Yelwa, the Chairman of Mailabo Bureau De Change, informed newsmen in Sokoto on Saturday that the contract came at the moment when Nigeria’s economic was in dire need of diversification.
“The arrangement in between China and also Nigeria suggests that the de facto money– dollar– will certainly no more hold on the import and export deal in between both nations.
“The quest for dollar through our banks will definitely reduce, as all transactions between Nigeria and China will be in Yuan instead of dollar,’’ he said.
He observed that oil sales from Nigeria to China would be settled in Chinese currency, stressing that access to Yuan would also be easier.
“The swap will eliminate challenges arising from transactions with the dollar and promote business flexibility between Nigerian and Chinese,’’ Yelwa explained.
According to him, the agreement will reduce trade imbalance between the two countries and create an enabling environment for trade by barter.
The News Agency of Nigeria ( NAN) reports that President Muhammadu Buhari and the Governor of Central Bank of Nigeria (CBN), Mr Godwin Emefiele signed the agreement with the Industrial and Commercial Bank of China Ltd. on April 12 in Beijing, China.
The agreement will allow Nigerian traders to transact business with Chinese currency instead of dollar.
With the agreement, Nigeria will become the clearinghouse for Yuan denominated transactions for the whole of Africa.(NAN)