The Nigerian government is looking to preserve the value of its currency via the adoption of the Chinese Yuan. By making the Yuan an official foreign exchange reserve currency alongside the dollar, the Nigerian government hopes to stop the depreciation of the Naira. This plan was proposed by the House of Representatives.

According to The Punch, a Nigerian newspaper, the decision was the result of a proposal made in a plenary session on Wednesday by Jafaru Leko, a member representing the Bogoro/Dass/Tafawa Balewa Federal Constituency, Bauchi State.

Jafaru Leko, during his address, noted that the rate of the Naira depreciation is fast becoming a cause for concern as it affects every facet of the economy. He noted that economic instability and uncertainty are the direct results of the currency’s poor performance.

He admitted that the idea of the Central Bank diversifying the foreign exchange reserve currency was originally an idea from the International Monetary Fund, which mentioned Nigeria as a country prime to adopt the initiative.

Source: BI