Yen to Naira swap

Economist Urges FG to Act on Currency Swap Agreement with China

Prof. Akpa Ekpo, a renowned economist and former director of the West African Institute of Financial and Economic Management, has urged the federal government to prioritize the implementation of a currency swap agreement with the People’s Bank of China.

According to him, this action seeks to reduce our reliance on the dollar in international trade.

On Saturday, Ekpo expressed his concern about Nigeria’s foreign exchange crisis, which originates from an excessive reliance on the dollar in international transactions.

The current state of the foreign exchange market emphasizes the importance of implementing the currency transfer agreement with China. This strategic action has the potential to alleviate the current economic environment’s pressures.

Prof. Akpa Ekpo said; “This is the time to implement the Nigeria-China currency swap so we don’t put all our eggs in one basket.

“So Nigerians dealing with China should deal with Chinese currency or with Naira, not with Dollar or euro; that will reduce the pressure on Dollar or pound.

“This is the time to take it very seriously; the Federal Government signed the agreement, it was done briefly then we didn’t know what happened again.

The three-year currency exchange agreement between Nigeria and China began in 2018. Renewed in 2021, it intended to minimize the Naira’s reliance on the dollar by increasing imports from China.

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