The Federal Government and the Central Bank of Nigeria have been encouraged by the House of Representatives to accelerate the adoption of the Chinese Yuan as an alternative trading currency.
This request was included in a resolution passed on Wednesday after a motion by Jafaru Leko.
According to Platinum Times, the Federal Government established a bilateral currency swap deal between Nigeria and China.
Leko urged the government to adopt the currency in the middle of the naira’s fight against major Western currencies in the motion.
He suggested that the currency be adopted as part of Nigeria’s foreign reserve.
“Chinese Yuan as an additional foreign exchange reserve currency might mitigate the adverse effects of Naira depreciation, reduce the risks associated with exchange rate fluctuations, and enhance Nigeria’s economic stability,” the minister added.
He contended that China has already achieved a dominant position in the global economy.
Following the passage of the motion, the House agreed that the Banking Regulations, Banking, and Other Ancillary Institutions committees work with the Central Bank of Nigeria to identify acceptable procedures to expedite the 2018 Yuan agreement.