House of Reps urge federal government to speed up adoption of Chinese currency
The House of Representatives has implored the Federal Government and the Central Bank of Nigeria to expedite the adoption of the Chinese Yuan as an alternative trading currency.
This call was contained in a resolution passed on Wednesday following a motion moved by Jafaru Leko.
TMY Newspapers recalls that the Federal Government informed of a bilateral currency swap deal between Nigeria and China.
In the motion, Leko appealed to the government to adopt the current in the face of the struggle of the naira against leading Western currencies.
He stated that the federal government should adopt the currency as part of the foreign reserve of Nigeria.
“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,” said Leko.
He maintained that China had already assumed a leading role in the global economy.
Upon adopting the motion, the House resolved that the committees on Banking Regulations, Banking, and Other Ancillary Institutions collaborate with the Central Bank of Nigeria to look at the appropriate mechanisms to expedite the 2018 agreement on Yuan.
