Nigerian BDC operators want a share of the Naira-Yuan agreement for their customers

The BDC operators applauded the currency swap agreement between the Central Bank of Nigeria (CBN) and the People’s Bank of China (PBoC), saying the deal will promote naira’s sovereignty in Africa.

• The BDC operators said the Naira-Yuan agreement would open a new business opportunity for forex operators in the country.

• Alhaji Aminu Gwadabe, ABCON president, said the naira would benefit hugely from the deal given the rising influence of the Chinese Yuan in the international market.

• The naira currently trades at N361/$ at the parallel market, Chinese Yuan is trading at 0.16 RMB to a dollar just as about N55.97 is equals to a Yuan.

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The Association of Bureaux De Change Operators of Nigeria (ABCON) has urged the Central Bank of Nigeria (CBN) to include its operating members in the $2.5 billion currency swap agreement to meet the critical needs of their numerous clients travelling to China for personal and business purposes.

This is coming as the BDC operators applauded the currency swap agreement between the Central Bank of Nigeria (CBN) and the People’s Bank of China (PBoC), saying the deal will promote naira’s sovereignty in Africa.

Alhaji Aminu Gwadabe, ABCON president, in a statement over the weekend said the naira would benefit hugely from the deal given the rising influence of the Chinese Yuan in the international market.

He argued that the admittance of Yuan into the basket of International Monetary Fund (IMF) currencies and the naira/yuan swap deal would actualise the dream of naira sovereignty in Africa.

Gwadabe disclosed that the currency swap deal was part of the CBN’s plan to keep the naira stable and protect the foreign reserves domiciled in dollars.

He said the deal would provide adequate local currency liquidity for Nigerian and Chinese industrialists and reduce difficulties they face in searching for the greenback.

“The deal will expand the BDCs capacity to handle new business transactions in Yuan. Besides, BDCs in both countries will have their transaction base expanded, including new opportunity to transact higher volume of Naira/Yuan in the export/import of equipment, raw materials and finished goods,” he said.

The ABCON said his members would equally benefit from the bilateral currency deal, given that a stable and strong naira was good for the economy and operators.

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He added that increased use of Yuan in trade deals would also open a new business opportunity for BDC operators.

Naira-Yuan FX market

The Nigerian naira has maintained stability at both the official and parallel markets, as the CBN continues its weekly dollar interventions.

The naira currently trades at N361/$, while the rate at the official market remains N305.9/$, Chinese Yuan is currently trading at 0.16 RMB to a dollar just as about N55.97 is equals to a Yuan.

Naira-Yuan trading

Recently, Nigeria's central bank released guidelines for the bilateral currency swap agreement between the country and Republic of China. The regulator said it will conduct bi-weekly trading sessions to ensure liquidity for trade and direct investment between the two countries.

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