Nigeria: House of Representatives Urges CBN to Include Chinese Yuan in External Reserves

The House of Representatives has recommended the inclusion of the Chinese Yuan as an official foreign exchange reserve currency, alongside other globally recognized currencies. The objective is to safeguard the naira against further depreciation, according to a resolution stemming from a motion put forward by Jafaru Leko, a representative of Bogoro/Dass/Tafawa Balewa Federal Constituency, Bauchi State.

During the plenary session on Wednesday, Leko highlighted the significant fluctuations in the value of the naira, contributing to economic instability and uncertainty in Nigeria. He pointed out the International Monetary Fund’s suggestion for central banks of developing countries, including Nigeria, to diversify their foreign exchange reserves.

Leko emphasized the evolving global economic landscape and the shift in international trade dynamics, with China playing a prominent role. Acknowledging China’s stable and globally recognized currency, the Chinese Yuan, Leko proposed that adopting it as an additional foreign exchange reserve currency could mitigate the adverse effects of naira depreciation, reduce risks associated with exchange rate fluctuations, and enhance Nigeria’s economic stability. He also emphasized the potential for improving trade and economic ties with China, a vital trading partner.

The House, in response to the motion, instructed its committees on Banking Regulations, Banking and Other Ancillary Institutions to collaborate with the Central Bank of Nigeria. Their task is to explore the necessary mechanisms, policies, and partnerships for the adoption of the Chinese Yuan and report back within four weeks for further legislative action.

In a separate motion, the lawmakers called for an end to unwarranted charges by telecommunication companies for services not rendered. Emmanuel Ukpong-Udo, representing Ikono/Ini Federal Constituency, Akwa Ibom State, moved the motion. The House urged the Nigeria Communications Commission to ensure that network providers, including MTN, Glo, Airtel, and 9mobile, delivered quality communication services to Nigerians consistently.

Additionally, the motion called on the Nigeria Communications Commission to address unwarranted charges related to calls connecting to wrong parties and zero voice. The Committee on Communications was mandated to oversee compliance with these directives.