Nigeria To Adopt The Chinese Yuan As Reserve Currency To Stop The Naira’s Depreciation

Nigeria To Adopt The Chinese Yuan As Reserve Currency To Stop The Naira’s Depreciation - It is no secret that Nigeria’s Naira has undergone a precipitous decline, plunging over 40% against the dollar since June 2023, according to the World Bank. This alarming rate of depreciation is ringing alarm bells across the nation, as its tentacles reach every corner of the economy. From surging import costs fueling inflation to dwindling investor confidence, the weakened Naira breeds instability and uncertainty. Basic necessities have become pricier, businesses are struggling to navigate foreign exchange shortages and economic planning has been mired in the haze of fluctuation. As the naira’s continued descent threatens to exacerbate existing social and economic inequalities, a stark question arises: will Nigeria find its footing amidst the turbulent tides of a depreciating currency? Well, the Nigerian government is considering adopting the Chinese Yuan as its reserve currency, a powerful move it thinks can help curb depreciation. Why is Nigeria considering the Yuan now? Does this mean the dollar will no longer be Nigeria’s reserve currency? And could the Yuan be the silver bullet that helps the giant of Africa kill currency depreciation for good? Join us in today’s video as we shed more light on these questions in great detail. On Wednesday, December 20th, 2023, a plenary session of Nigeria’s House of Representatives called upon the Nigerian government and the Central Bank of Nigeria to hasten the adoption of the Chinese Yuan as an alternative trading currency. The proposal was made by Mr Jafaru Leko, a member representing the Bogoro/Dass/Tafawa Balewa Federal Constituency, Bauchi State. During his address, Mr Jafaru Leko stated that the rate of Naira depreciation is quickly becoming a source of concern because it affects every aspect of the economy. Leko pointed out that economic insecurity and uncertainty are direct consequences of the currency’s poor performance. He admitted that the idea of the Central Bank diversifying the foreign exchange reserve currency originated with the International Monetary Fund, which named Nigeria as a prime candidate for the initiative. He also mentioned that the idea was feasible given that China was taking the lead in international trade as the global economy’s dynamics continued to evolve. But why is Nigeria considering a pivot towards the Yuan, given its longstanding use of the U.S. dollar as a reserve currency? ▬▬▬▬▬▬▬▬▬ ✅SUPPORT US /AFFILIATE LINKS Use this affiliate link for your purchases at #MIZIZI International - Support our channel - PayPal: newafricachannel(at) Follow us on Instagram - Follow us on Twitter - Join us on Facebook - ▬▬▬▬▬▬▬▬▬ ✅COPYRIGHT DISCLAIMER The New Africa Channel doesn’t fully own some of the materials compiled in its videos. It belongs to people or organizations who ought to be respected. If used, it falls under the following provisions: Copyright disclaimer section 107 of the Copyright Act 1976. “Fair use“ is allowed for purposes such as criticism, comment, news reporting, teaching, scholarships, and research. ✅ If you are the owner of the materials used in this video, contact us, and we will follow your request immediately: info(at) ▬▬▬▬▬▬▬▬▬ ✅COMMENTING POLICY Keep your comments and posts appropriate, helpful, and relevant. Any offensive, disrespectful, harmful, threatening, vulgar, obscene, or inappropriate content will be removed immediately. Spamming, vandalizing, promoting, and advertising are also not allowed. While we encourage free speech and open discussion, attacking or harassing other users is not tolerated. Repeat violators of this policy will be reported and may face a ban. ▬▬▬▬▬▬▬▬▬ #AfricaNews #TopAfricaNews #News #NewsAfrica #AfricaNews