The
CBN, in May, signed the agreement with the People’s
Bank of China to facilitate trade between the two countries and enhance
foreign reserve management, making Nigeria the third country in Africa (after
South Africa and Egypt) to sign such a deal with China.
The
central bank officials on, a few days ago, held a town hall meeting with
businesses in Lagos to introduce the yuan for imports from China ahead of plans
to start auctioning the Asian currency later this month.
Hmmm!!! Folks, let us say the truth and shame the devil. Many
Nigerian non-oil products exporters have been defrauded of huge amount of money
in the process of exporting agricultural commodities and solid minerals to
foreign countries. Do you know why? They were not trained on export operations,
management, documentations and the best methods of payment in export trade.
This is terrible!!! Nigerians cannot continue to lose money to foreigners in
the course of export business. Exporters, would you like to keep on being
scammed? Why don’t you get a practical manual that explains the stages of
export trade from processing and packaging of commodities to receipt of payment
by the foreign buyers? It explains export operations, export management, export
documentations and methods of payment in export trade? Yes, it is a
contemporary step-by-step guide to export trade. It tells all the contemporary
dynamics in export trade. To get it, click on the link below:
The
dollar is Nigeria’s main trade currency. The country suffered severe dollar
shortages after the price of crude oil, its top export and main source of
forex, plunged in late 2014, prompting it to introduce capital controls in
2015.
It now
has multiple exchange rates against the US currency and has been selling the
dollar on the interbank market to boost liquidity after floating the naira for
investors.
“The central bank will encourage users importing goods from China to
use the yuan and not the dollar,” officials
said. “Dollar demand burden arising from trades with
China would be lifted from our forex reserves,” they said, adding that
initial yuan trades could be small.
According
to the official, the deal is aimed at reducing reliance on the dollar, and, as
such, reduce the pressure on the naira-dollar exchange rate.
Under
the swap arrangement, the CBN would hold N720bn in an account in favour of the
PBOC while the Chinese central bank would hold 15 billion yuan, implying an
exchange rate of N48 to the yuan.
The
bank also said the move was aimed at encouraging Chinese firms buying local raw
materials and semi-finished goods to pay in naira. However payment for crude
oil sold to China would be in the US dollar, they said. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Nigeria
has been trying several options to curb pressure on the naira. But some of its
plans may require time to materialise as it needs to develop its economy in
order to cut imports.
It
currently runs a large trade deficit with China, its biggest trading partner.
Nigeria imported goods worth almost $2bn per annum from China last year as
against almost $500m imported by the Chinese, figures showed.
Economists
fear that currency swap could worsen the deficit and trade balance. Some
importers told Reuters that strong naira would erase the benefit of the swap
but added that the naira might weaken especially after elections next year.
(Punch)
Have you heard this? Many
Nigerian exporters have been defrauded of huge amount of money in the process
of exporting commodities to foreign countries. Do you know why? They were not
trained on export operations, management, documentations and the best methods
of payment in export trade. This is terrible!!! Nigerians cannot continue to
lose money to foreigners in the course of export business. Exporters, why don’t
you get a practical manual that teaches the stages of export trade from
processing and packaging of commodities to receipt of payment by the foreign
buyers. It teaches export operations, export management, export documentations
and methods of payment in export trade? It is a contemporary step-by-step guide
to export trade. It tells all the contemporary dynamics in export trade. To get
it, click on the link below:
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