Market News
Why Chinese traders prefer Naira over US Dollar – BDC operators - DAILY POST
BY
The National President of the Association of Bureau De Change Operators, ABCON, Aminu Gwadabe, has explained that the naira appreciation against the dollar is partly due to renewed confidence in the Nigeria-China currency swap deal.
He made this known in remarks on the stability of the Naira.
According to him, Chinese investors and businesses in Nigeria are now accepting naira for yuan through peer-to-peer (P2P) transactions.
He explained that in the mining sector, Chinese nationals are conducting their day-to-day business in naira over dollars.
“The Chinese are now accepting naira for yuan through peer-to-peer (P2P) transactions.”
“Visit any mining factory, and you’ll find Chinese nationals conducting business directly in naira. This is something the CBN isn’t actively facilitating.”
“If a Nigerian is importing from China, all he needs now is yuan to complete the transaction. There’s no need for dollars. “So why go through a third currency?” he stated.
The development comes as Nigeria and China sealed a bilateral currency swap agreement in December 2024 amounting to N3.28 trillion or 15 billion yuan.
As of Tuesday, the naira continued appreciation against the dollar, exchanging at N1,526.06 per dollar.
A presidential spokesperson, Bayo Onanuga, recently stated that the US dollar is no longer a king over the Naira.
