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CBN Renews Strategy For Naira-Yuan Swap Deal

The Central Bank of Nigeria (CBN) on Monday, raised the hope that the lingering Naira-Yuan swap deal will be achieved as part of strategies to reducing the huge dollar demand pressure on the local currency. The CBN Governor, Godwin Emefiele, gave the indication at the ongoing International Monetary Fund/World Bank Group yearly meetings in Washington DC. According to him, there is a lot of “networking meetings going on, and I can assure you that meetings are going on with some of our partners, particularly, China.”

Expressing optimism that there would be positive outcome, he noted that some of the meetings included the Managing Director of IMF as well as the World Bank Group, in an effort to achieve some of the objectives. “I believe in the course of time, we would achieve it. Nigeria happens to be one of the foremost countries in the world that adopted the Remimbi as a reserve currency. We would work together with China, to ensure that we also get our fair share of the benefit from this arrangement,” he said.

In another development, the Minister ofFINANCE, Kemi Adeosun, reiterated that the planned massive investment in critical infrastructure can improve the country’s productivity, create jobs and bring comfort for our people. “Nigeria is too big to fail. We are too significant in the region to underperform. So, what we are trying to do is to reset the Nigerian story so that we can grow. To grow, we need to have the enabling infrastructure.

“We need to have power and we have gotten some commitments. We also need to improve transport, rail, and housing. We are really confident that we would get back to growth,” she said.  Meanwhile, Emefiele has affirmed that monetary, fiscal and structural reforms are the directions the country has been undergoing, adding that it is also accompanied by serious coordination and collaborations. He raised the hope that if the direction is sustained, the country would achieve that desired objective, pointing out that the reforms include the flexibleEXCHANGE RATE regime, which he said, is picking up gradually.

“When you are in the type of situation that we are in, naturally you find out that people are a little bit sceptical. But with time, as we develop the confidence, we would begin to see more of them coming into the country,” he said.  But the World Bank President, Jim Yong Kim, said the institution has effected some changes to help it better deliver results for its stakeholders and the low income countries. Already, the reforms had helped it receive funding support to the tune of $52 billion, cut $400 million in administrative costs and reinvestedSAVINGS in the bank’s business. These reinvestments are allowing us to deliver results to our clients more quickly.

But to make headway in mobilising private sector funds for infrastructure and growth support, the bank chief warned of the unpredictable nature of government policies and actions, corruption, and tax regulations, which continue to present the largest obstacles for investment in developing countries, including Nigeria. “We want to continue working with you to make real progress as you tackle corruption, build stronger institutions, and reform tax structures, which will remove the constraints to private sector investment, foster better service delivery andPROMOTE better governance.  “We also want to work with you to make investments more attractive by lowering real and perceived risks, both in established and in emerging sectors,” he said.

About Editor

Otunba Sayo Akintola is a 1992 graduate of Linguistics from the University of Ibadan, Oyo State. He holds a post-graduate diploma in Financial Management and MBA from Abubakar Tafawa Balewa University, Bauchi. He started his 12-year sojourn in journalism at the Nigerian Tribune in 1993 as Business and Economy reporter. He rose through the ranks to become the Group Business Editor of the nation’s oldest surviving private national newspaper, the Nigerian Tribune. He set up World Street Journal magazine in 2018.

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