Naira fall: Lawmakers seek official adoption of Chinese Yuan for currency exchange

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 Jafaru Gambo Leko from Bauchi State at plenary on Wednesday, December 20, in Abuja.

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

He also noted that the International Monetary Fund proposed diversifying foreign exchange reserves for Central Banks of developing countries, including Nigeria.

The lawmaker further argued that the global economic landscape was evolving and international trade dynamics were shifting, with China assuming a leading role in global trade.

Leko observed that the People’s Republic of China had a stable and globally recognized currency, the Chinese Yuan, 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 the plenary, the House adopted a motion directing telecommunication companies to refrain from unwarranted charges for 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 namely MTN, Glo, Airtel, and 9mobjle provide quality communication services to Nigerians.

    Moving the motion, Ukpong-Udo said: “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.”

    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

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    1 COMMENT

    1. I really don’t know how we’ve gotten to this all time low. These politicians are representing constituencies, and by implication, they’re supposed to be a group of sound and intelligent minds. If the best they can offer at this critical time is to display their ignorance of the economic factors that adds value to a country’s currency, then Nigerians have wasted their votes.

      I join my voice to the call for the House of Representative to be scrapped.

      #ScrapTheHOR
      #RestructureTheHOA

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