The House of Representatives has asked the federal government to implement the 2018 policy that recognises the Chinese Yuan as an official foreign currency for economic operations in Nigeria.
The House charged its Banking Regulations and Banking Committees with collaborating with the Central Bank of Nigeria to identify measures to properly execute the policy, which they expect would stop the Naira’s continuing depreciation.
The House recognised the enormous amount of transactions between Nigeria and China, indicating that the Chinese Yuan could act as an official exchange reserve currency.
Hon Jafuru Gambo Leko, who led the conversation, pointed out that the Nigerian economy has seen significant swings in the value of the Naira, resulting in financial crisis and uncertainty.
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He cited an International Monetary Fund proposal calling for diversifying foreign reserves held by central banks in developing nations, including Nigeria.
He went on to say that China has a stable and widely recognised currency that has acquired acceptance in foreign markets and has established a leadership position in global trade.
Adopting the Chinese Yuan as an extra foreign exchange reserve currency, according to Hon. Leko, might minimise the negative impacts of Naira devaluation, lessen the risks associated with exchange rate swings, and improve Nigeria’s economic stability.
Hon. Julius Ihonvbare, the House Leader, informed the House that the government adopted the Yuan as a policy following the drop in crude oil prices in the international market. He emphasised that the next stage would be to put the policy into action.
