What we stand to gain…if any.
The only benefit accruable is the ease of accessing credit facilities whenever we want to buy anything from China.
It’s a one sided journeying pathway that gives Nigeria an unhindered access to purchase whatever, without stressing herself about dollar procurement.
It doesn’t affect any other transactions that Nigeria entered into with other nations.
Rather, it gives the country a single digit focal point to China for all those, who are engaged or about to engage in business here in Nigeria enroute to Chinese goods and services only.
The major probable assessments are;
> it doesn’t encourage local production of goods and services,
> employment is hindered,
> unhindered influx of Chinese people everywhere in Nigeria.
Already, this has started as most of our constructions and small scale industries are all now, Chinalized.
> there may be no standardisation of products and services coming into the country, because there’s no environmental impact assessment conducted yet before signing the currency swap deal.
> retrenchment of workers by manufacturers of those goods and services coming into the country may become rampant.
> Most capital infrastructural developments and financial services are likely to be taken over by the Chinese companies,
> inducement of Capital flights will definitely emerge, as many Chinese businessmen will be repatriating all their businesses proceeds without purchasing our raw materials.
> black market for dollar acquisitions will probably surfaced, as most of the Chinese people doing business here could have other global links to other countries for raw materials and rebates,
> and finally, it has an element of a new system of economic colonization.
What will China do with a currency(Naira) that’s not listed as a global transaction currency?
I will try to give a clue of what the conclusion entails and because of the volume, I have decided to divide this concluding part into two.
The problem with most Nigerian government secret contractual agreements is that the officials’ assumption that most Nigerians are morons, and can’t interpret certain pancaked clauses.
In The Beginning:
Let me take us to 1983, when PMB was the military head of state and his first stewardship scorecard.
As at that time, the World Bank and IMF were really waging war against the high Naira valuation, when compared with dollar and pound.
The Americans and the Europeans couldn’t understand why a third world country’s currency should have such currency with such high value.
Then, Naira is traded in USA, UK and some other European countries, as a strong African global transaction currency.
In fact, by implication, Naira was the unannounced West African currency.
The Americans and Europeans couldn’t stand such competition; and such,
there was a clear cut international conspiracy on how to rubbish the Naira.
The secret of international monetary policy and diplomacy is still what is making the dollar a global transaction currency.
And hence, America can never allow any currency to compete with her dollar’s global recognition and transactional value.
Any fall on American dollar in international market rating is always viewed with serious emergency manipulations, just to maintain the dollar status.
America is the highest world debtor and still, you can’t mess up with the value of the dollar.
The concept of economic market supply and demand assumption has no place in American dollar valuation rate.
You can see how some economic theories are specifically postulated for third and developing world countries, especially on a free flow or none interference enforcement with the market forces determinant in a country’s currency valuations.
We are told to allow the market forces to determine the value of our currency, whereas, America will never allow such theory to cloud their national currency manipulations and valuations.
Most currency valuations are the manipulations of the Western world, that wants to maintain the master – servant economic policy relationship.
‘It’s a suicide mission for any nation to allow a free flow determinant factor on her currency valuation.’
‘It’s only a slave that will allow his master to decide how his household should be run.’
Don’t start to argue that China, USA or Europe have better economist postulators than Nigeria. They don’t.
Our problem is that we like to borrow virtually everything tagged foreign, without scanning or tasking our brians on our environmental peculiarities.
Our leaders prefer foreign everything, and as such, don’t reckon with most of our sound economic growth theorists.
Our leaders are still having the mental delusions of grandeur to believe that foreign economic policies are better than home grown policies; and unfortunately, their slave mentalities have no clue about the propaganda concepts that are targeted against us; and in most cases, World Bank and IMF are their chief executors.
If you could recall, before Trump was elected, the Chinese Yan was almost at the verge of becoming world bank’s recognised currency as the second global transaction currency.
But immediately Trump was elected, the first economic strategy was to take the dollar back to be the monopolistic global transaction currency status.
He started with the slogan: ‘America First’.
Unfortunately, not everyone could decode the truth about the slogan,
‘America First’; until his first official broadcast, where he didn’t mince words to openly state that, he will renegotiate all the bi lateral agreements with Asia Pacific countries.
The target was to curtail the gradual global recognition of China and her currency.
Before you know it, the Japanese Prime Minister was the first to pay him a visit, even before he was sworn in.
In that meeting, Japan, who had been on the forefront for a second Asian global transaction currency, came to denounce such move; and then pledged his country’s allegiance to Trump’s economic blueprint agenda.
And when Trump assumed office, he reiterated that, he will start the Asia Pacific bi lateral agreements renegotiation with China.
The Chinese Prime Minister had to hurriedly rushed to Washington and where Trump equivocally stated the Americans stand on the global dollarisation.
The Chinese government didn’t only agree, but equally consented that an inter ministerial committee be set up by the two governments to reconcile the American debt profile with China.
At the end of the committee assignment, the America debt that was estimated at about $500bn, was reconciled to something of about $380bn.
The term world power is not necessarily a reflection of the military might, but the power of your global transaction currency.
Today, North Korean, Syria, Russia, Saudi Arabia, UK, Israel, and many others, are all coming to the negotiating table with Trump.
Everyone loves making a friend with a wealthy personality, because, with his wealth, typified in bank account, he can do anything and go scotfree.
Why do you think that America is the most powerful country as at today?
The simple answer is that, the dollar is almost the World currency.
There’s no where in the world that dollar is not acceptable.
Have you seen any poor man negotiating on a platform of a master?
‘A master acrynom is synonymous with money.’
If you doubt me, go and find Dangote’s trouble, then you will see the difference between money power and fairness.
Before We Loose Track:
The Chinese government didn’t like Trump’s economic growth agenda and has to bring into full force, her second economic strategic blueprint of Massive Market Penetration (MMP) and Africa was the focus.
When Trump learnt about this, he sent his Secretary of state for Africa affairs to visit some key selected African countries and unfortunately, he messed up Trump’s pre planned programme to counter the Chinese African economic diplomacy.
As a no nonsense ideologist, Trump sacked the Secretary, even as he was in Nigeria.
A quick fix has to be arranged to lure Nigeria, which happens to the biggest Sub Sahara market to America.
A long time policy that refused Nigeria the sale of any military hardwares was revoked, and hurriedly, an invoice was despatched to Nigeria to buy 12 number Tucano Aircrafts and other armouries with the caveat that Nigeria must pay immediately.
Nigeria immediately paid the controversial $496m without any recourse to National Assembly input or cost comparisons.
A follow up to diplomatic relationship was immediately fixed with Trump inviting PMB to Washington in April, 12 2018.
In that meeting, a new deal was struck and Nigeria was probably warned on six major issues.
1. The Israelis capital relocations recognition,
2. Her romance with China to be reconsidered,
3. Trade balancing- where America wants a chunk of the Nigeria market on agricultural sector,
4. PMB’S re-election support,
5. The herbsmen and Christian killings, and
6. The insurgents or terrorists problem.
The trade war between USA and China has just begun.
With Nigeria almost at the verge of signing the currency swap deal with China, coupled with Trump’s economic conditionalities on having the agricultural sector, Nigeria was at a delima.
And China was suspicious of PMB’S visit to Washington with top America secret economic agenda, China has to hurriedly package the currency swap deal with a promise that, she won’t dabble into America’s agricultural sector and or any other agreements assented with the Washington power house.
A diplomatic communication was sent to Washington, promising the Americans that their areas of interest will not be touched.
With such communicated assurance to Washington, Nigeria was given the green light to sign the currency swap contractual agreement, but the full modalities for implementation should be reviewed secretly by Washington.
The battle line has being drawn, and Nigeria is in the centre of the battlefield.
DSM…Born To Excel.
(To be concluded tomorrow…Your Currency and Your Power)
Sunny Oby Maduka, PhD is a prolific writer and social commentator.