Nigeria To Change Foreign Reserve From Dollars To Yuan

The Chinese Ambassador
to Nigeria, Mr Gu Xiaojie, has
expressed support for the plan by
the Central Bank of Nigeria (CBN)
to convert more of the country’s
39 billion dollar foreign reserve to
Yuan.
Speaking at a Forum on
Wednesday in Abuja, Xiaojie
described the plan as “ a very
encouraging development’’.
He said it demonstrated the
“closeness’’ between both
countries, which currently have an
annual bilateral trade volume of
13 billion dollars.
“Nigeria is among few countries,
or two or four countries, in the
world that have parts of their
foreign reserve in Renminbi (RMB)
currency and we are happy about
that.
“We have noticed that the Central
Bank of Nigeria is increasing its
share of Chinese RMB Yuan in its
foreign currency.
“Talking about financial
cooperation there are more
opportunities, wider range of
things we could do in finance
because China has the biggest
foreign reserve in the world.
“For such a big country (like
Nigeria) you have to have all kinds
of securities.’’
Xiaojie said China had noted the
positive growth in Nigeria’s
economy, including the
fundamental growth in the micro
economy.
“The government is handling the
financial micro economy very
cautiously with the international
cooperation and I think you are
doing the right thing.
“We hope that there will be closer
cooperation in the area of
financing and micro economy,’’ he
said.
In January the CBN had hinted of
plans to convert more of Nigerian
reserves from dollars to Yuan.
At present 80 per cent of Nigeria’s
foreign reserves are held in U.S.
dollars.
The apex bank started converting
its reserves into Yuan in 2011.

http://www.vanguardngr.com/2014/10/chinese-ambassador-backs-plan-convert-nigerian-foreign-reserves-dollars-yua