Its clearly evident that trade between Africa and China has increased significantly in the last couple of years, and Nigeria is no different. The West African powerhouse and China’s trade reached a jaw dropping $7.76 billion in the first quarter of 2011.
China, as much as we all hate to admit it, has also liberated its economy somewhat and with that its currency. So I guess it would only make sense for the Nigerian Central Bank to up its forex reserves of the Chinese currency the yuan.
The Central Bank’s governor Lamido Sanusi says it will be 10% of the country’s current $32.96 billion. He was quoted at a press conference in Beijing saying “Given the trillions of dollars that the Chinese are holding, the reserves in US dollars it would appear to me that the appetite for having more dollars is diminishing.”
it doesnt seem that this will affect normal Nigerian on the streets much as of yet. But some people we spoke to says people in Nigeria dont even recognise the Chinese yuan but prefer the US dollar.
Standard Bank realised a researh report that shows that over the next 5 years more African countries are likely to follow Nigeria footsteps.
My only question though is..is Nigeria just rallying for more Chinese business, cause I really dont see why they had to go all the way to China to announce this.
But I am sure most of us are a little happy to see the dollar lose a little bit of its corky prestige.