NIGERIA- CHINA CURRENCY SWAP DEAL: The untold Story. Part One. Since the signing of the MOU of the above deal between Nigeria and China, I have taken few days to do a little study on the essence of this currency swap deal between Nigeria and China.
Please note that my inquiry was based on what Nigerians stand to gain. I am going to serialize this piece into three or four parts and hopefully, at the end, you will be able to understand certain intrigues that are not available to ordinary citizens when international contractual obligations and agreements are engaged in.
Let’s Begin: The first thing we should ask ourselves is, where is the Yan swapped, domiciled? Secondly, is this in the shape of a barter trading concept? Thirdly, what are terms of repayment? Fourthly, what will China do with a currency(Naira) that’s not listed as a global transaction currency? I will answer the last question while concluding .
Stay Tuned: The first thing that hit me was that, the money is not given to the recipient country to use in developing his country as she wished; and it’s not meant to fast track infrastructural development except for trading purpose. Although, we didn’t see or read the contents of the Nigeria- China signed MOU, but oftentimes, the donor country will detail how and what her currency swap assent should be used for.
Equally, the donor country has to determine the exchange rate tradeable and specify, the modalities of the swapping periods and what should be the trading instruments or global equivalent currency for repayment.
With the above appetizer in mind, what’s the benefit of the currency swapped to Nigeria in this deal?
My Problems: But unfortunately, because our government operates in secrecy, a true practising democratic society, before the signing of the MOU, the citizens would have been availed with the contents and clauses in the MOU agreement.
As usual in Nigeria, the government behaves as the all knowing and as such, don’t care to avail the citizens of certain clauses that should be appraised to ascertain what we are going to be entrenched with in the future. So like the blinds or probably, our supposedly lack of interests, most of our international contractual obligations and agreements are secretly signed without the inputs of the citizens. That portend a very serious danger to the country in the future.
What Gave Chinese Leadership the Insight to entering such agreement with us? A lot of scholars have postulated that it was because, China is trying to penetrate the biggest African market. Such scholars are not in tune to the happenings of today to notice that China has already taken over our developmental strategies and economic monopolies. The second school of thought has come up to argue that, China is trying to shut down the European union and USA.
Again, such school of thought has no understanding that virtually, all our economic policies are tailored towards the European and American formats, because majority of those managing our economy today are all baked from one higher institution or the other within the ambit of America and Europe.
Take a look at the educational qualifications of most of our leaders in our economic policies formulations and implementations, and you will discover that most of them are American or European graduants; and they can’t give what they don’t have any idea about. They have all been brainwashed into believing that the American and European economic theorists are better Nigerians. You discover that we have not been able to formulate any leadership, political, social and economic policies, patterned after our African peculiar communal concepts and theories.
Our democracy as you know was a very expensive borrowed political ideology, because the foundation of our ways of leadership, relationship and doing things have all been consolidated in a Constitution that has nothing to do with our peculiarities. ‘Africa has become a bat in the midst of confusion; not knowing who they are in the committee of nations’.
With such confused state of mind of inferiority complex, we have borrowed virtually everything from outside the shores of our continent and today, globalisation has worsened our pathetic state of half baked freedoms. Our freedoms as a race are more or less better interpreted on locations, tribes, religions and probably, our black skins. In other words, we are still mentally and physically, under the atmosphere of enslavement, based on our lack of clarity about who we are and what we can do for ourselves, without importing foreign ideologies.
The Minister of Finance, from her diction, will give you a clue about our economic policies strategic thinking process, based on acquired experiences and educational qualifications catchment area. And for those who are of the opinion polls that Nigeria needs China more than USA; one idea about such misconception was that, it showcased a people with myopic ideas about international economic politics and diplomacy. USA doesn’t need us, rather, we need America in many ways. America has better oil quality, technology, they are far, infrastructural development, we have not started and global recognition and monetary policy manipulations, we are just about to crawl.
Many Nigerians thought that with the currency swap, Dollar will fall, but unfortunately, as at today, 29.05.2018, Naira depreciated against the dollar with almost 1.23%. Prior till date, Naira-Dollar ratio has stabilised at N360:$1. But as at today, Dollar is being exchanged at N366 per a dollar. As at last weekend, the Stock Market has been on the low, ending at a negative point of 2.8%.
(To be continued tomorrow…What’s The Truth?).
Sunny Oby Maduka, PhD is a prolific writer and social commentator.