Reps Eye Chinese Yuan Reserve Currency To Bolster Naira Stability

The House of Representatives is seeking the adoption of the Chinese Yuan (CNY) as an official foreign exchange reserve currency, alongside other major international currencies, to mitigate the impact of the naira’s depreciation.

This followed the adoption of a motion moved by Hon. Jafaru Gambo Leko from Bauchi State at plenary on Wednesday.

Moving the motion, Leko noted that the Nigerian economy has experienced substantial shifts regarding the value of the naira, triggering economic instability and uncertainty.

He also noted that the International Monetary Fund proposed diversification of foreign exchange reserves for central banks of developing countries, including Nigeria.

The lawmaker further stated that the global economic landscape is evolving and international trade dynamics are shifting, with China assuming a leading role in global trade.

Leko observed that the People’s Republic of China has a stable and globally recognised currency, the Chinese Yuan, which is gaining recognition in international trade.

He said, “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.

Also at plenary adopted a motion directing Telecommunication Companies to restrain from unwarranted charges on services not rendered and improve service delivery.

In the motion sponsored by Hon. Emmanuel Ukpong-Udo from Akwa Ibom, the House urged the Nigeria Communications Commission (NCC) to ensure that registered network providers: MTN, Glo, Airtel, and 9mobjle provide quality communication services to Nigerians.

It also urged the Nigeria Communications Commission to abort unwarranted charges on cans that bridge to wrong parties and zero voice and mandated the Committee on Communications to ensure Compliance.

Moving the motion, Ukpong-Udo expressed concern that “Despite the increasing and remarkable patronage of telecommunications services by Nigerians including low-income earners, rural dwellers and the vulnerable in our society, communication services provided by network carriers are not proportionate with the interest expressed by Nigerians.

“Nigerians pay charges on calls with low voice quality arising from congestions, calls freezing and fluctuating network services; Nigerians lose valuable business hours and finances due to poor service delivery by these network service providers whilst enriching the service providers to their detriment.”