The House of Representatives has called on the Central Bank of Nigeria (CBN) to adopt of Chinese Yuan (CNY) as an official foreign exchange reserve currency alongside other major international currencies.
It also mandated its Committees on Banking Regulations, Banking and Other Ancillary Institutions to liaise with the apex bank to explore the appropriate mechanisms, policies, and partnerships required for the adoption of the Chinese Yuan
The resolution of the House followed the adoption of a motion on the need to adopt Chinese Yuan Currency to mitigate the impact of Naira depreciation, moved at the plenary on Wednesday by Hon. Jafaru Leko.
Presenting the motion, Leko said the Nigerian economy has experienced substantial shifts regarding the value of the Naira, triggering economic instability and uncertainty.
He said the International Monetary Fund proposed diversification of foreign exchange reserves for central banks of developing countries, including Nigeria.
The lawmaker pointed out that the global economic landscape was evolving and international trade dynamics are shifting, with China assuming a leading role in global trade;
Leko stressed that the People’s Republic of China has a stable and globally recognised currency, the Chinese Yuan (CNY), which is gaining recognition in international trade.
He emphasised that adopting the 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 lawmaker said it would enhance Nigeria’s trade and economic ties with China, a crucial trading partner.
The House therefore mandated “the Committees on Banking Regulations, Banking and Other Ancillary Institutions to liaise with the Central Bank of Nigeria to explore the appropriate mechanisms, policies, and partnerships required for the adoption of the Chinese Yuan (CNY) as an official foreign exchange reserve currency alongside other major international currencies and report back within four weeks for further legislative action.”
