Reps move to adopt Chinese Yuan as Official Exchange Currency

The House of Representatives have revealed intentions to expedite the inclusion of the Chinese Yuan (CNY) as an official foreign exchange reserve currency, aiming to counterbalance the Naira’s depreciation impact.

The motion was put forth by Hon. Jafaru Gambo Leko, representing Bauchi State, who highlighted Nigeria’s current economic instability attributed to notable fluctuations in the Naira’s value.

Leko emphasized the stability and global recognition of the Peoples Republic of China’s currency, noting its increasing prominence in the local market.

He referenced the International Monetary Fund’s recommendation for diversification of foreign exchange reserves among developing nations, Nigeria included.

Arguing the evolving global economic landscape and China’s pivotal role in international trade, Leko proposed,

“Adopting the Chinese Yuan as an additional foreign exchange reserve currency might mitigate the adverse effects of Naira depreciation, reduce the risks associated with exchange rate fluctuations, and enhance Nigeria’s economic stability.”

He further underlined the potential for strengthening Nigeria’s economic ties with China, a significant trading partner, through this adoption.

The House, in response to Leko’s motion, directed its committees on Banking Regulations, Banking, and Other Ancillary Institutions to collaborate with the Central Bank of Nigeria.

Their task is to explore suitable mechanisms, policies, and partnerships necessary for the Yuan’s adoption. A comprehensive report is expected in four weeks, paving the way for subsequent legislative actions.