The Industrial and Commercial Bank of China Ltd and the Central Bank of Nigeria signed a deal on Yuan transactions last week during President Muhammadu Buhari's visit to the Asian country. The deal was struck to resuscitate the current currency slump in Nigeria. It means the Yuan will now flow freely around Nigerian banks and will even be included in the country's foreign exchange reserves.
Since the announcement, the Naira had appreciated by 10 naira against the dollar, Aminu Gwadabe said. According to him, the dollar was now changing for 310 as against the former rate of 320 and predicted that once the policy is in force, the price of dollar will continue to fall.
"You know more than 50 percent of foreign businesses in Nigeria is with China and before now, Nigerians doing business in China have to change their money to dollar, then from dollar to Yuan," he added.
"You can all testify to the number of made in China things in the country. So if small and large businesses can convert straight to Yuan, it's better," he told reporters.
He added that this new policy will help the informal payment sector and also urged the CBN to monitor the development closely for effective implementation of the policy.
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