Reps urge FG to adopt Chinese Yuan, says it will mitigate effect of Naira depreciation

The House of Representatives has called upon the Federal Government and the Central Bank of Nigeria to speed up the adoption of the Chinese Yuan as an alternative trade currency.

This resolution, prompted by a motion from Jafaru Leko on Wednesday, comes amid the backdrop of the Federal Government’s announcement of a bilateral currency swap agreement with China.

Leko, in the motion, urged the government to embrace the Chinese Yuan, especially in light of the naira’s challenges against major Western currencies, suggesting its inclusion in Nigeria’s foreign reserves.

He argued that China had already assumed a leading role in the global economy.

“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,” he said.