Keep External Reserves In Chinese Yuan, Reps Advise CBN

Keep External Reserves In Chinese Yuan, Reps Advise CBN
Yuan

The House of Representatives has called for the adoption of the Chinese Yuan as an official foreign exchange reserve currency with other internationally recognised currencies to protect the naira from further depreciation.

The resolution was sequel to the adoption of a motion moved by member representing Bogoro/Dass/Tafawa Balewa Federal Constituency, Bauchi State, Jafaru Leko, at a plenary session on Wednesday.

Leading the debate, Leko noted that the Nigerian economy was experiencing substantial shifts in 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.

According to him, the global economic landscape was evolving, and international trade dynamics were shifting, with China assuming a leading role in international trade.

The lawmaker observed that the People’s Republic of China had a stable and globally recognised currency, the Chinese Yuan, which was gaining recognition across the globe.

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.

Meanwhile, the lawmakers also adopted a motion directing telecommunication companies to immediately stop unwarranted charges on services not rendered and improve service delivery.

In a motion moved by a member, representing Ikono/Ini Federal Constituency, Akwa Ibom State, Emmanuel Ukpong-Udo, the House urged the Nigeria Communications Commission to ensure that registered network providers including MTN, Glo, Airtel, and 9mobjle provided quality communication services to Nigerians at all times.

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

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