To mitigate the impact of Naira depreciation, the House of Representatives is now seeking to fastrack the adoption of the Chinese Yuan (CNY) as an official foreign exchange reserve currency alongside other major international currencies.
This was announced at plenary on Wednesday.
The motion was moved by Hon. Jafaru Gambo Leko from Bauchi State.
According to Leko, the nation is currently experiencing economic instability and uncertainty due to the substantial shifts regarding the value of the Naira
He argued that the Peoples Republic of China has a stable and globally recognized currency, adding that it is gaining recognition in the local market.
The lawmaker also noted that the International Monetary Fund proposed diversification of foreign exchange reserves for central banks of developing countries, including Nigeria.
He insisted that the global economic landscape is evolving and international trade dynamics are shifting, with China assuming a leading role in global trade.
According to him, “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.
“Furthermore, it would enhance Nigeria’s trade and economic ties with China, a crucial trading partner.”
Adopting the motion, the House mandated its 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 and report back in four weeks for further legislative action.