The human rights attorney recounted how, five years ago, China and the Federal Government signed a currency exchange arrangement.
Femi Falana, a senior Nigerian advocate, has urged the nation’s business community to insist on carrying out all financial transactions in naira, even using it to pay for merchandise brought in from China.
Falana recalled how the Federal Government and China signed a currency exchange arrangement five years ago in a statement made available to the media on Monday.
He pointed out that the transaction, which had a value of RMB 16 billion (or N720 billion), was intended to reduce challenges in finding US dollars by giving Nigerian and Chinese manufacturers and other firms ample local currency liquidity.
The speed, ease, and volume of transactions between the two nations were all to be enhanced by the swap.
But the scholarly silk asserted that “the World Bank and the International Monetary Fund, which oversee the Central Bank of Nigeria, have conspired with the Central Bank of Nigeria to thwart the currency swap.”
Falana further mentioned that he recently contacted the Central Bank of Nigeria (CBN) to inquire about the status of the currency exchange deal between Nigeria and China utilising the Freedom of Information Act.
The human rights activist argued that even though it has been confirmed that the agreement is still in effect, the CBN still forbids Nigerians from conducting business in China using Naira. As a result, he argued, Nigerian businesses should insist on conducting all of their business in Naira, including paying for goods imported from China.
See the full statement below:
NIGERIANS SHOULD INSIST ON TRANSACTING BUSINESS WITH CHINESE PEOPLE IN NAIRA
By
Femi Falana SAN
About five years ago, the Federal Government of Nigeria and China entered into a currency exchange agreement. The transaction, which was valued at Renminbi (RMB) 16 billion or N720 billion was aimed at providing adequate local currency liquidity to Nigerian and Chinese industrialists and other businesses, thereby, reducing difficulties encountered in the search for the United States Dollar. The swap was also designed to improve the speed, convenience, and volume of transactions between the two countries.
But the International Monetary Fund and the World Bank, which superintend the Central Bank of Nigeria, have colluded with the Central Bank of Nigeria to frustrate the currency swap. The purpose of the economic sabotage is to promote the dominance of the United States Dollar in Nigeria. Hence, the federal government, state governments, and the business community have been prevented from transacting business in Naira and Yuan. Thus, by compelling Nigerians to pay dollars for goods imported from China, the Central Bank has continued to promote the unwarranted dollarisation of the Nigerian economy.
I was recently compelled to exercise my right under the Freedom of Information Act by requesting the Central Bank to furnish me with information on the status of the currency swap agreement between Nigeria and China. In its reply to my letter, the Central Bank confirmed that the currency swap agreement will not be due for renewal until 2024. In spite of the confirmation of the currency swap, the Central Bank has not allowed Nigerians to transact business in China by paying Naira. However, since the currency swap is valid and subsisting, I call on the Nigerian business community to insist on transacting business in Naira, including payment for goods imported from China.
Kindly find below my letter and the reply of the Central Bank on the currency swap agreement between Nigeria and China.
