Take Currency Swap Seriously, Reduce Reliance on Dollars — Economist Urges CBN

Cat:

Related stories

Ramaphosa, Trump Meet Soon Over Strained South Africa-US Relations After Ambassador Rasool’s Expulsion

By Abiola Olawale South African President Cyril Ramaphosa has announced...

Eminent Scholar- Diplomat, Ibrahim Gambari Showers Accolades On Emir of Ilorin, Ibrahim Sulu-Gambari, on His 85th Birthday

By Abiola Olawale Eminent Scholar-Diplomat, former Nigeria’s Foreign Affairs Minister...

Relief As NiMet Workers Call Off Strike After FG’s Brokered Truce

By Abiola Olawale Workers of the Nigerian Meteorological Agency (NiMET)...

‘No Comment’…Reps Decline Response As Ibas Shuns Panel On Rivers Emergency Rule Again

By Kolawole Ojebisi The House of Representatives Ad-Hoc Committee on...

Poverty Will Increase In Nigeria By 3.6% Over Next Five Years — World Bank

By Kolawole Ojebisi The World Bank has projected a bleak...

By Agency Report

An economist, Prof. Akpan Ekpo, has urged the Central Bank of Nigeria (CBN) to take seriously the currency swap agreement with Peoples Bank of China (PBoC) to reduce reliance on dollars for trade.

Ekpo, a former Director-General of West African Institute for Financial and Economic Management (WAIFEM), gave the advice while speaking with the News Agency of Nigeria (NAN) on Saturday in Lagos.

“This is the time to implement the Nigeria-China currency swap so that we don’t put all our eggs in one basket.

“So Nigerians who are dealing with China should deal with Chinese currency or with naira not with dollar or euro; that will reduce the pressure on dollar or pound.

“This is the time to take it very seriously; the Federal Government signed the agreement, it was done briefly then we didn’t know what happened again.

“If you look at the global trend, emerging markets by the Brics are trying to trade with bilateral currency to downplay the importance of dollar, euro or pound because these currencies are not theirs and they can’t print them.

“So, if we can now implement the Chinese-naira swap, it will be very helpful for business trade.’’

The expert also linked the rising inflation to the exchange rate, saying “if any business man spends more naira to buy dollars and does not know what the cost will be the next time, he will jerk up the price.

“So inflation passed through the exchange rate will be automatic as business men continue to use more naira to buy dollars.’’

NAN recalls that the CBN in May 2018, signed a currency swap deal valued at renminbi (RMB) 16 billion (about $2.5 billion) with the PBoC.

The swap deal was signed by Godwin Emefiele, the suspended CBN Governor, and Yi Gang, the former PBoC Governor.

The deal was designed to provide the Chinese and Nigerian currencies directly to industrialists and other businesses from both countries.

The apex bank said the agreement would provide naira liquidity to Chinese businesses and provide RMB liquidity to Nigerian businesses, thereby improving the speed, convenience and volume of transactions between the two countries.(NAN)

The New Diplomat
The New Diplomathttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

[tds_leads input_placeholder="Your email address" btn_horiz_align="content-horiz-center" pp_msg="SSd2ZSUyMHJlYWQlMjBhbmQlMjBhY2NlcHQlMjB0aGUlMjAlM0NhJTIwaHJlZiUzRCUyMiUyMyUyMiUzRVByaXZhY3klMjBQb2xpY3klM0MlMkZhJTNFLg==" pp_checkbox="yes" tdc_css="eyJhbGwiOnsibWFyZ2luLXRvcCI6IjMwIiwibWFyZ2luLWJvdHRvbSI6IjQwIiwiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdCI6eyJtYXJnaW4tdG9wIjoiMTUiLCJtYXJnaW4tYm90dG9tIjoiMjUiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsImxhbmRzY2FwZSI6eyJtYXJnaW4tdG9wIjoiMjAiLCJtYXJnaW4tYm90dG9tIjoiMzAiLCJkaXNwbGF5IjoiIn0sImxhbmRzY2FwZV9tYXhfd2lkdGgiOjExNDAsImxhbmRzY2FwZV9taW5fd2lkdGgiOjEwMTksInBob25lIjp7Im1hcmdpbi10b3AiOiIyMCIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3Njd9" display="column" gap="eyJhbGwiOiIyMCIsInBvcnRyYWl0IjoiMTAiLCJsYW5kc2NhcGUiOiIxNSJ9" f_msg_font_family="downtown-sans-serif-font_global" f_input_font_family="downtown-sans-serif-font_global" f_btn_font_family="downtown-sans-serif-font_global" f_pp_font_family="downtown-serif-font_global" f_pp_font_size="eyJhbGwiOiIxNSIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_weight="700" f_btn_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_transform="uppercase" btn_text="Unlock All" btn_bg="#000000" btn_padd="eyJhbGwiOiIxOCIsImxhbmRzY2FwZSI6IjE0IiwicG9ydHJhaXQiOiIxNCJ9" input_padd="eyJhbGwiOiIxNSIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMCJ9" pp_check_color_a="#000000" f_pp_font_weight="600" pp_check_square="#000000" msg_composer="" pp_check_color="rgba(0,0,0,0.56)" msg_succ_radius="0" msg_err_radius="0" input_border="1" f_unsub_font_family="downtown-sans-serif-font_global" f_msg_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_size="eyJhbGwiOiIxNCIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_weight="500" f_msg_font_weight="500" f_unsub_font_weight="500"]

Latest stories

Latest News
Ramaphosa, Trump Meet Soon Over Strained South Africa-US Relations After Ambassador Rasool's ExpulsionEminent Scholar- Diplomat, Ibrahim Gambari Showers Accolades On Emir of Ilorin, Ibrahim Sulu-Gambari, on His 85th BirthdayRelief As NiMet Workers Call Off Strike After FG’s Brokered Truce'No Comment'...Reps Decline Response As Ibas Shuns Panel On Rivers Emergency Rule AgainPoverty Will Increase In Nigeria By 3.6% Over Next Five Years -- World BankAlleged N1.3trn Fraud: Court Authorizes EFCC to Arrest Six CBEX PromotersDaddy Showkey Slams Niger Governor Over Arrest Order Against People With DreadlocksWhy I'll Never Join Wike, Others To Insult Odili -- AmaechiOkowa, Oborevwori's Defection: Atiku's Future Bleak As Allies Give 'Leprous' Coalition Wide Berth -- OnanugaNNPCL Set for Forensic Audit, Says Minister EdunPope Francis's Doctor Provides Fresh Update on the Pontiff's Death: “He Died Without Suffering”Obama's Wife, Michelle, Breaks Silence On Why She Shunned Trump's InaugurationJubilation As FG Releases N50bn To Clear ASUU, Other Varsity Staff AllowancesNiger Gov. Backtracks On Deadlocks Ban Amid Public OutrageNiger State Governor Umaru Bago Orders Burnaboy, Jay-z, Faze, Victor Moses, Timaya, Solidstar, Rema, Others Arrested if Found in Niger State
X whatsapp