Nigeria and China Sign Deal on 'Free Flow' of Yuan as President Buhari Visits Beijing (Photos)

President Buhari being welcomed by Xu Shaoshi, Chairman of National Reform and Development Commission as he attends the Official Opening Ceremony of Business Forum on China/Nigeria Production Capacity Cooperation in Beijing China on 12th April 2016. With them is Minister of Industry, Trade & Investment Okechukwu Enemalah

The Central Bank of Nigeria (CBN) and the Industrial and Commercial Bank of China Ltd (ICBC) have signed an agreement that will ease yuan transactions in Nigerian banks.

While speaking with reporters on Tuesday, Lin Songtian, the ICBC director-general of the Chinese ministry’s African affairs department, has disclosed that the Central Bank of Nigeria (CBN) and the Industrial and Commercial Bank of China Ltd (ICBC) have signed an agreement that will ease yuan transactions in Nigerian banks.

Lin who also revealed that the Chinese currency will be included in Nigeria’s foreign reserves, said, "It means that the renminbi (yuan) is free to flow among different banks in Nigeria and the renminbi has been included in the foreign exchange reserves of Nigeria," Reuters quoted him as saying.

The nation's apex bank, CBN has said it plans to diversify the foreign exchange reserves away from the dollar by switching a stockpile into yuan, underlining the momentum behind Beijing’s drive to internationalise its currency.

Nigeria converted up to a tenth of its reserves into yuan five years ago. Now the government is considering issuing Panda bonds to help fund a record budget as Africa’s biggest economy suffers a slump in global oil prices, which has slashed revenues.

Lin said a framework on currency swaps has been agreed, with Nigeria making it easier to settle trade deals in yuan, adding that China has currency swap deals with countries ranging from Kazakhstan to Argentina and New Zealand.

President Buhari with L-R: Mr Zheng Zhijie Governor of National Development Bank, Minister of Industry, Trade & Investment Okechukwu Enemalah, Mr Xu Shaoshi Chairman of National Reform and Development Commission, Assistant Minister of Foreign Affairs Mr Qian Hongshan and Minister of Foreign Affairs Geoffrey Onyeama as President Buhari attends Official Opening Ceremony of Business Forum on China/Nigeria Production Capacity Cooperation in Beijing China on 12th April 2016

Meanwhile, President Muhammadu Buhari attended the official opening ceremony of the business forum on China-Nigeria production capacity cooperation holding in Beijing.

At the official opening of the forum were Xu Shaoshi, chairman of National Reform and Development Commission; Zheng Zhijie, governor of National Development Bank, and Qian Hongshan, assistant manager of foreign affairs.

On the Nigerian side were Okechukwu Enemalah, minister of industry, trade and investment; Geoffrey Onyeama, minister of foreign affairs; Babatunde Fashola, minister of works, power and housing; and Babagana Monguno, national security adviser.

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