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CBN reveals trading in Chinese Renminbi will start before end of July

Officials stated the agreement was purposed at decreasing reliance on the dollar and “as such, detract the pressure on the naira-dollar exchange rate.”


Devdiscourse News Desk Nigeria
Updated: 16-07-2018 08:13 IST
CBN reveals trading in Chinese Renminbi will start before end of July

The Central Bank of Nigeria (CBN) yesterday revealed that trading in the Chinese Renminbi would begin before the end of July. (Image Credit: Twitter)

The Central Bank of Nigeria (CBN) yesterday revealed that trading in the Chinese Renminbi would begin before the end of July.

A top CBN official stated that the CBN was finalizing modalities for the trading in the Chinese currency. This gave a USD 2.5 billion bilateral currency swap compromise signed in May between the CBN and the People's Bank of China (PBoC).

According to the source, the CBN wants to secure that the rules around the trading of the Renminbi are tightened so as not to fabricate any room for arbitrage and currency manipulation.

"All hands are on deck, all the work is being done and in the next two weeks trading will begin. There will be a very marginal discount to stimulating people to go for it. But the discount will be so small as not to encourage arbitrage but encourage those who really want to do so that they can get an advantage for embracing the Renminbi currency," the source stated.

The CBN lately held town hall meetings in some cities in the country in its bid to boost businesses importing goods from China to use the Yuan instead of the United States dollar in its endeavour to endorse its naira currency and boost reserves.

Officials stated the agreement was purposed at decreasing reliance on the dollar and "as such, detract the pressure on the naira-dollar exchange rate."

COUNTRY : Nigeria

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