Lawmakers seek official adoption of Chinese Yuan for currency exchange
THE House of Representatives is seeking the adoption of the Chinese Yuan (CNY) as an official foreign exchange reserve currency alongside other major international currencies to mitigate the impact of the naira’s depreciation.
This followed the adoption of a motion moved by Jafaru Gambo Leko from Bauchi State at plenary on Wednesday, December 20, in Abuja.
Moving the motion, Leko noted that the Nigerian economy had experienced substantial shifts regarding the naira value, triggering economic instability and uncertainty.
He also noted that the International Monetary Fund proposed diversifying foreign exchange reserves for Central Banks of developing countries, including Nigeria.
The lawmaker further argued that the global economic landscape was evolving and international trade dynamics were shifting, with China assuming a leading role in global trade.
Leko observed that the People’s Republic of China had a stable and globally recognized currency, the Chinese Yuan, gaining recognition in international trade.
He said, “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.
“Furthermore, it would enhance Nigeria’s trade and economic ties with China, a crucial trading partner.”
Adopting the motion, the House 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 and report back in four weeks for further legislative action.
