By Abdallah el-Kurebe
The chairman of Mailabo Bureau de Change, Ibrahim Aliyu Yelwa has said that the Chinese-Nigeria currency swap agreement would boost bilateral trade between the two countries.
Yelwa, who was reacting to the recent development in Sokoto on Saturday said that the agreement came at the right time when the US dollar was predominantly waxing stronger against currencies of developing nations, thereby affecting, especially, Nigeria’s economy.
“The agreement signed between China and Nigeria means that the US dollar will no longer hold on the import and export deals between the two countries. The quest for the US Dollar through our banks will definitely reduce because all transactions between Nigeria and China will be in Yuan instead of USD,” he explained.
He further said that sales of oil and other products from Nigeria to China would be settled in the Chinese currency, adding that accessibility to Chinese currency for imports would now be less difficult.
“The agreement will reduce pressure on the US dollar, as the Chinese Yuan is now the direct second currency. The MOU will eliminate consequences arising from transactions with the dollar and there will also be increased flexibility between Nigerian and Chinese businessmen,” Yelwa further explained.
He observed that the agreement would further reduce trade imbalance as well as create an enabling environment for trade by barter between the two countries.