Every country’s currency is like her heartbeat, and reasonable leaders will never negotiate with World Bank or IMF to devalue their currencies with the disguise of attracting foreign investments.
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.
What’s The Truth?
Don’t forget that the donor country, China is not giving you the currency as cash to boast the country’s liquidity ratio index within your foreign account reserve, rather, such amount is consolidated in a syndicated vault under an accounting heading, where all Nigerians purchases from China will be debited with the equivalent of Yan instead of Dollar, as converted in the rate agreed by both countries.
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%.
The announcement of a currency-swap deal between Nigeria and China has compelled speculators to make last minute plans to wreck havoc on the naira before the deal gets underway.