A Way To Go, Nigeria - China Currency Swap

Chinese Yuan and Nigeria Naira Notes

It is commendable that Central Bank of Nigeria (CBN) had finally effectuated  an historic $2.5 billion bilateral currency swap agreement with the Peoples Bank of China (PBoC) aimed at easing foreign exchange currency liquidity in the economy.
As forecasters would forecast, it is pertinent to begin to observe henceforth, monitoring the exchange rate as some people or persons who hoarded foreign currencies to make gains will offload them in order not to have heart attack over their huge loss arising from the currency swap deal with china.  

Many Nigeria banks will be seeking to have their representative office in China  like first bank who saw to the future and already have office in China. Inflation will go down drastically because of the price of commodities that will drop.

In Case You Don't Understand 

Some or most people who do not understand the meaning of Nigeria Naira/Yuan swap with China and why American government is desperately smoothing their relationship with Nigeria. 

A clearer picture of the deal and it's effects on our economy and way of life. 

Soon, the techno phone you bought at N80,000 for instance may be going for N12, 000 now.

The importance of this is that since almost 70% of the goods we import come from China and Asia and only about a meagre 12% come from America; the question is why must we use Dollars to transact with China?

Thus, with the new deal, instead of using dollars at N350 to $1 to import those goods, we can now buy Yuan at 47 Naira to 1Yuan and import those stuffs directly. Therefore, Instead of buying these goods in dollars in China, we will now buy them in Yuan at 5 times cheaper than their dollar rates.

Meanwhile, it should be noted that China is now the highest importer of our crude. This means that our trade with them can be on Naira/Yuan basis. 

This is a giant stride that our media needs to disseminate.

Of course, with the new deal, the demand for dollars will nose dive, with an attendant crash in its price.