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From Uche Usim, Abuja
An economic expert and former Commissioner of Finance, Imo State, Prof Uche Uwaleke, has urged the House of Representatives to bury the proposition that Nigeria adopts the Chinese Yuan (CNY) as an official foreign exchange reserve currency alongside other major international currencies, saying the idea was unrealistic.
In a WhatsApp message to Daily Sun, Uwaleke said that the demand for dollars, especially for invisible transactions, was dominant.
He added that the bulk of Nigeria’s external reserves is in US dollars.
He said: “No doubt, members of the House of Representatives mean well since they are concerned about the persistent depreciation of the naira.
“However, it goes without saying that when it comes to Exchange Rate Management, the CBN is in the best position to determine what is most appropriate for Nigeria”.
The House of Representatives’ suggestion follows the adoption of a motion moved by Hon. Jafaru Gambo Leko from Bauchi State at plenary last Wednesday.
Moving the motion, Leko noted that the Nigerian economy has experienced substantial shifts regarding the value of the Naira, triggering economic instability and uncertainty.
He also noted that the International Monetary Fund proposed diversification of foreign exchange reserves for central banks of developing countries, including Nigeria.
The lawmaker further stated that the global economic landscape is evolving and international trade dynamics are shifting, with China assuming a leading role in global trade.
Leko observed that the People’s Republic of China has a stable and globally recognized currency, the Chinese Yuan which is gaining recognition in international trade.
