Central Bank of Nigeria adds $500 million in Chinese Yuan to its reserves

In what has been described as a bold move by Economists around the world, the Central Bank of Nigeria (CBN) recently added $500 million worth of Chinese Yuan to its reserves. This was reported exclusively by the Wall Street Journal (WSJ).

According to WSJ, CBN intends to buy seven times worth that amount in Chinese Yuan underscoring the strength of its economic ties with China which recently has included Chinese investment in Nigeria-based rice processing plants as well as airport development projects.

We had earlier reported in September last year that Nigeria’s Central Bank Governor was strongly considering diversifying the country’s reserves to include the Yuan.

Accoridng to Mr. Sanusi Lamido Sanusi, “over the past six months Nigeria has converted 1.4% of its reserves to Chinese currency, largely by selling euros and buying yuan on offshore markets in Hong Kong, Mr. Sanusi said. He says he plans to increase that amount by selling much of the bank’s euro holdings and buying more yuan directly from the People’s Bank of China.

What do you think of the Central Bank of Nigeria’s recent addition of the Chinese Yuan to its reserves?

Post Author: CPAfrica.com

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One thought on “Central Bank of Nigeria adds $500 million in Chinese Yuan to its reserves

  • okeke Tochi

    (March 4, 2012 - 9:49 pm)

    Nigeria diversifying its foreign reserves is a good thought. I only hope that our foreign policy and economic interests will not alienate us from the West. They are still our best ……..

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