13 April 2016
The Industrial and Commercial Bank of China Limited has heralded a new phase for the country with the signed agreement on Yuan transactions.
The Director General of the Foreign Ministry’s African Affairs, Lin Songtian, clarified that this agreement means the Yuan is free to flow among different banks in Nigeria, and has been included in the foreign exchange reserves of Nigeria.
Right before the official opening ceremony of the Business Forum on China-Nigeria Production Capacity Cooperation holding in Beijing, China, the agreement was reached in a meeting between Nigerian President, Muhammadu Buhari, and Chinese President, Xi Jinping.
President Buhari left for China on an official visit to achieve security and support from Beijing for the development of Nigeria’s infrastructure, especially in the power, roads, railways, aviation, water supply and housing sectors.
However, in a bid to consider the possible way of issuing Chinese panda bond to make for the deficit in the 2016 budget, the aim is to borrow the cheapest money possible and diversification of the domestic economy.