by Segun Odeleye
The Central Bank of Nigeria (CBN) disclosed on Tuesday that it has plans to increase the Chinese Yuan’s proportion of the country’s external reserves. Currently two percent of the reserves is in Yuan but the CBN plans to increase that to seven percent.
According to the Deputy Governor (Operations), CBN; Dr. Kingsley Chiedu Moghalu, this is as a result of the Yuan’s growing strength in the global economy.
Moghalu who spoke in an interview with Bloomberg in London, did not however give a timeframe for the change.
Presently, 85 percent of Nigeria’s reserves is in dollars.
Moghalu said: “It was clear to us that the future of international economics and trade will shift in large part to business with and by China. Ultimately the renminbi (yuan) is likely to become a global convertible currency.”
According to Moghalu, the central bank started to diversify its reserves into Yuan in 2011 and is working with the People’s Bank of China to boost the holdings as soon as the relevant structures are in place.
Nigeria’s external reserves stood at $43.182 billion as at Monday.