Business in Africa: Nigeria to earn oil exports in Chinese Yuan

NIgeria is set to earn its oil exports in Chinese Yuan, Business Day reports. Through a new agreement between Nigeria and China, between 5-10% of Nigeria’s foreign export earnings will be domiciled in the Chinese currency.

According to Central Bank Governor, Mr. Sanusi Lamido Sanusi, Nigeria is seriously considering the Yuan officially saying that “the Chinese Yuan is afterall, already being exchanged in the country.”

Bismark Rewane, C.E.O of Financial Derivatives Company (FDC Limited) said that the CBN’s decision to diversify the country’s external reserves from the U.S. dollar will benefit portfolio managers and will act as a store of value.

However, despite the positive benefits, some analysts fear that if Nigeria’s decision to earn some of its oil exports in Yuan is emulated by other African countries, it could pose a strain on Nigeria’s relationship with the United States.

Currently, the U.S. accounts for about 36% of Nigeria’s oil exports.

What do you think about Nigeria’s recent decision to earn some of its oil export earnings in Chinese Yuan?

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4 thoughts on “Business in Africa: Nigeria to earn oil exports in Chinese Yuan

  • JSO

    (September 13, 2011 - 12:30 am)

    Hey, what a grave mistake? Someone should tell me it's a lie. Who approved that and was it passed through NASS? Nigeria just can't do that or what are these leaders thinking about? Chinese Yuan is subject to manipulation and not market forces of demand and supply. China is a communist country and one man show of a thing. How can you earn a stronger $$$ and exchanged it for a weaker Yuan. Even China keeps their external proceeds in $$$, OMG.

  • Symphony music

    (September 13, 2011 - 3:27 am)

    Dumb. Long term value comes from the existence of a large economy, an understood system of law, an understood accounting system, known property rights, infrastructure including roads, municipal services, schools, police. China, still a third of the USA's GDP, has a long way to go before it's currency outdoes the US dollar as a store of value. This decision would not be the decision of someone who has thought of something that is best for Nigeria. Dumb. Dumb. Dumb. (sorry to have to be so blunt).

  • Axeman777

    (January 31, 2012 - 3:35 pm)

    Wise,very wise….Only a fool will fail to realise that China will usurp the United States as the primary economic and geopolitical power sooner rather than later.The investment in the Yuan is wise especially within the 5 to 10% range…

  • Jon Lee

    (February 14, 2012 - 2:18 am)

    Does it matter? Even if the exchange come in Yuan, no be thief them go still

    thief am..

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