In a bid to address the challenges posed by the depreciation of the Naira, the House of Representatives is pushing for the adoption of the Chinese Yuan (CNY) as an official foreign exchange reserve currency. The motion for this adoption was moved by Hon. Jafaru Gambo Leko from Bauchi State during the plenary session on Wednesday.
Leko highlighted the significant shifts in the Nigerian economy due to the fluctuation in the value of the Naira, leading to economic instability. He referenced the International Monetary Fund’s recommendation for developing countries to diversify their foreign exchange reserves, and he specifically proposed the inclusion of the Chinese Yuan.
The lawmaker emphasized the evolving global economic landscape and the changing dynamics of international trade, with China playing a prominent role. China’s stable and globally recognized currency, the Chinese Yuan, is gaining acceptance in international trade.
Leko stated, “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.”
The House adopted the motion and directed its committees on Banking Regulations, Banking and Other Ancillary Institutions to collaborate with the Central Bank of Nigeria. The committees are tasked with exploring the necessary mechanisms, policies, and partnerships for the adoption of the Chinese Yuan. They are expected to report back within four weeks for further legislative action.
Additionally, the House addressed concerns related to telecommunication services in Nigeria. In a separate motion, the House urged telecommunication companies to refrain from unwarranted charges on services not rendered and to improve service delivery. The Nigeria Communications Commission (NCC) was directed to ensure that registered network providers, including MTN, Glo, Airtel, and 9mobile, provide quality communication services to Nigerians. The Committee on Communications was also mandated to oversee compliance with these directives.
