As the value of the Chinese currency slides at the international currency market, analysts said Nigeria could see cheaper imports from the Asian giant on the back of the currency swap deal made recently.
The Chinese yuan tumbled to its lowest level in six months after the People’s Bank of China (PBoC) reduced the reserve ratio requirement for commercial banks by 0.5 per cent. This move by the PBoC according to Lukman Otunuga, an analyst with global forex broker, FXTM, may fuel concerns over China’s economic outlook at a time where global trade concerns continue to weigh heavily on sentiment.
Nigeria and China sealed a currency- swap deal worth $2.4 billion on May 4, 2018 , that is expected to provide local currency liquidity between Nigerian businessmen and their Chinese counterparts.
Otunuga in an emailed response to LEADERSHIP noted that a high degree of optimism remains over the Nigeria/China currency swap deal. He however said while a depreciating Yuan could be a welcome…
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