The House of Representatives has mandated its Committees on Banking Regulations, Banking and Other Ancillary Institutions to liaise with the Central Bank of Nigeria to explore the appropriate mechanisms, policies, and partnerships required for the adoption of the Chinese Yuan (CNY) as an official foreign exchange reserve currency.
This was resolved following a motion moved by Hon. Jafaru Gambo Leko member from Bauchi State at the plenary on Wednesday.
The House:Noted that, the Nigerian economy has experienced substantial shifts regarding the value of the Naira, triggering economic instability and uncertainty;
Also said, the International Monetary Fund proposed diversification of foreign exchange reserves for central banks of developing countries, including Nigeria;
It further stated that, the global economic landscape is evolving and international trade dynamics are shifting, with China assuming a leading role in global trade;
The noted that, the People’s Republic of China has a stable and globally recognized currency, the Chinese Yuan (CNY), which is gaining recognition in international trade;
Accordding to Hon. Leko, 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 said, adopting the Yuon and other international currencies will enhance Nigeria’s trade and economic ties with China and othercountries, as crucial trading partners.
