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The House of Representatives proposed the adoption of the 2018 policy recognizing the Chinese Yuan as an official foreign currency for transactions in Nigeria.
The move aims to address the continuous depreciation of the naira and bolster economic stability.
The House further directed its committees on Banking Regulations, Banking, and Other Ancillary Institutions to collaborate with the Central Bank of Nigeria (CBN) in exploring mechanisms, policies, and partnerships needed to implement the policy effectively.
Spearheaded by Hon. Jafaru Leko, the motion highlighted the significant trade volume between Nigeria and China, making a case for the inclusion of the Chinese Yuan as a foreign exchange reserve currency alongside other major international currencies. This aligns with the International Monetary Fund's recommendation for diversification of foreign exchange reserves.
Hon. Leko emphasized the evolving global economic landscape, with China playing a prominent role in international trade. Recognizing the stability of the Chinese Yuan, he argued that its adoption could mitigate the adverse effects of Naira depreciation, minimize risks associated with exchange rate fluctuations, and strengthen Nigeria's economic stability.
The House believes that incorporating the Chinese Yuan into the foreign exchange reserves will not only enhance economic stability but also foster stronger trade ties with China, a crucial partner in international trade.
House Leader Hon. Julius Ihonvbare noted that the Yuan's use was already adopted as a policy by the government, particularly in response to the decline in crude oil prices. The emphasis now lies in executing and implementing this policy effectively.