Wednesday, 11 July 2018

CBN WOOS NIGERIANS TO USE CHINESE YUAN FOR IMPORTS

The Central Bank of Nigeria (CBN) is wooing local businesses importing goods from China to use the yuan instead of the United States’ dollar in its effort to support the naira and boost reserves. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html

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:

Hmmm!!! Folks, have you ever imagined how the financial status of your firm will be when more than 20,000 CEOs and other key decision makers of blue-chip corporations pay for your products and services or even give you very juicy deals. The link below will tell you more: http://www.tectono-business.com/2015/07/tectono-business-review-in-conjunction_21.html