The Chinese Ambassador to Nigeria, Mr Gu Xiaojie, has expressed support for the plan by the Central Bank of Nigeria (CBN) to convert more of the country’s 39 billion dollar foreign reserve to Yuan.
Speaking at a Forum in Abuja, Xiaojie described the plan as ” a very encouraging development”. He said it demonstrated the “closeness” between both countries, which currently have an annual bilateral trade volume of 13 billion dollars.
“Nigeria is among few countries, or two or four countries, in the world that have parts of their foreign reserve in Renminbi (RMB) currency and we are happy about that. “We have noticed that the Central Bank of Nigeria is increasing its share of Chinese RMB Yuan in its foreign currency. “Talking about financial cooperation there are more opportunities, wider range of things we could do in finance because China has the biggest foreign reserve in the world. “For such a big country (like Nigeria) you have to have all kinds of securities.”
In January the CBN had hinted of plans to convert more of Nigerian reserves from dollars to Yuan. At present 80 per cent of Nigeria’s foreign reserves are held in U.S. dollars.
The apex bank started converting its reserves into Yuan in 2011.
