2 BUSINESS DAY C002D5556
NEWS
BDCs see currency swap deal promoting naira sovereignty in Africa
HOPE MOSES-ASHIKE
Bureaux De Change Operators have described the $ 2.5 billion currency swap agreement between the Central Bank of Nigeria ( CBN ) and the People ’ s Bank of China ( PBoC ) as a deal that will promote naira ’ s sovereignty in Africa .
Aminu Gwadabe , president , Association of Bureaux De Change Operators of Nigeria ( ABCON ), who spoke on the agreement at the weekend , in Lagos , said the naira would benefit hugely from the deal given the rising influence of Chinese Yuan in the international market .
Gwadabe said the admittance of Yuan into the basket of International Monetary Fund ( IMF ) currencies and the Naira / Yuan swap deal would actualise the dream of naira sovereignty in Africa .
The naira has remained stable at both the official and parallel markets , as the CBN continues its weekly dollar interventions . The naira , which in February 2017 was exchanging at N520 /$ in the parallel market , now exchanges at N361 /$ while rate at the official market remains N305.9 /$. The yuan has equally made significant progress this year , appreciating 1.8 percent against the dollar to become the world ’ s second-strongest Asian currency .
The ABCON boss also urged the CBN to consider diversifying dollar disbursement to BDCs with percentage amount of yuan to meet the critical needs of their numerous clients travelling to China for personal and business purposes . He explained that if implemented , such move would further deepen the interest in purchasing yuan and reduce dollar demand .
He disclosed that the currency swap deal was part of the CBN ’ s plan to keep the naira stable and protect the foreign reserves domiciled in dollars . He said the deal would provide adequate local currency liquidity for Nigerian and Chinese industrialists and reduce difficulties they face in searching for the greenback .
He explained that in local currencies , the swap was worth 15 billion Renminbi ( RMB )/ Yuan or N720 billion , adding that the threeyear renewable deal would allow for the direct exchange of RMB and naira for the purpose of trade and direct investment between the two countries . The agreement could be renewed on expiration , at the instance of both countries .
The ABCON boss said Bureau de Change ( BDCs ) will equally benefit from the swap deal given that a stable and strong naira is good for the economy and operators , adding that increased use of Yuan in trade deals will also open a new business opportunity for BDC operators .
According to Gwadabe , AB- CON will continually support CBN in achieving its exchange rate stability mandate and promoting economic growth through increased global partnerships and collaborations .
According to the guideline , the swap agreement allows for both banks to among other purposes , make available liquidity in their respective currencies for the facilitation and promotion of trade and investments across Nigeria and China . This will be done through the purchase , sale and subsequent repurchase and resale of the Chinese yuan against naira and vice versa .
He reiterated that the said swap deal would smoothen bilateral trade , boost investment , and protect the financial market in both countries as well as cut dollar demand by Nigerians entrepreneurs importing from China . All these , he said , will firm the value of the local currency .
China has remained Nigeria ’ s largest import partners over the last five years , with imports from China standing at over 20 percent of Nigeria ’ s total imports . He therefore advised that to achieve the full gains of the deal , Nigeria had to take steps that boost its trade balance with China by raising the quality of its local products to make them more attractive and acceptable to the Chinese people .
He said the deal would reduce currency transaction cost for importers that go for Yuan while also easing foreign exchange liquidity pressures in periods of rate volatility and / or scarcity for Nigeria .
“ The deal will expand the BDCs capacity to handle new business transactions in Yuan . Besides , BDCs in both countries will have their transaction base expanded , including new opportunity to transact higher volume of Naira / Yuan in the export / import of equipment , raw materials and finished goods ,” he said .
KEHINDE AKINTOLA , Abuja it would appear that the security agencies were diligent in the task of investigation as well as in arresting and prosecuting the culprits . We applaud their assiduousness in this particular case , and affirm our support for the rule of law and the administration of justice .
“ However , we are reminded that in the first quarter of this year alone , more than 4000 Nigerians have been killed in violent attacks ( including many women and children ), by persons or groups described in various places as armed pastoralists , rustlers or bandits .
“ In some cases , these perpetrators have decimated entire communities or laid to waste massive human settlements , including schools , hospitals and places of worship . In nearly all these cases , there have been neither arrest nor diligent prosecution .
“ Government has a duty to affirm in words and in deeds , its commitment to the equal value of every Nigerian life and to the equal protection of all Nigerians . Where it fails to do this , it encourages the perception that it is unwilling to protect every Nigerian and unable to hold equally accountable anyone who violates a Nigerian life .
“ At the moment , it appears that the perception appears to exist that there is a lack of political will to apply to all suspected perpetrators , the same
Monday 18 June 2018
Group says FG unwilling to prosecute killer herdsmen
A
coalition of civil society organisations known as Joint Nigeria Crisis Action Committee ( JN-CAC ) on Friday expressed concern over the lackadaisical attitude of Federal Government towards ending the gruesome killing of Nigerians , especially women and children by armed pastoralists otherwise called killer herdsmen .
The coalition , which commended the High Court of Adamawa State ’ s recent conviction of five persons on charges of culpable homicide punishable with death for the killing of a pastoralist in Demsa Local Government Area of Adamawa , however , chided government apparatus for failing to bring to book those involved in the unabated killings in Adamawa , Benue , Kaduna , Nassarawa , Plateau , Taraba , and Zamfara states .
The group stated this via a statement titled : ‘ The tilted justice ’ signed by Yemi Adamolekun , Abiodun Baiyewu and Chidi Anselm Odinkalu .
“ This week , Nigerians received news of the conviction by the High Court of Adamawa State five persons on charges of culpable homicide punishable with death for the killing of a pastoralist in Demsa Local Government Area of Adamawa .
“ Given the facts of the case , standards of diligence that has been demonstrated in this case in Adamawa State .
“ As a result , large groups of armed and organised killers appear to be on prowl Adamawa , Benue , Kaduna , Nassarawa , Plateau , Taraba , and Zamfara States with no consequences for the challenge that they pose to the safety of our communities , the coexistence of our people and the stability of our country .
“ Nigeria Mourns therefore calls on government , particularly our security agencies to forthwith fulfil their constitutional obligation of ensuring the safety and security of all Nigerians , while respecting their human rights , by tracking down and ensuring the prosecution of every member of these murderous criminal groups .
“ We also call on government to account for every missing and dead person from affected communities , rehabilitate destitute victims in IDP camps , and promote adherence to the rule of law for all .
“ Finally , since the current crop of security chiefs have from all indications proven their inability to guarantee our safety and end the cycle of impunity , we call on President Mohammad Buhari to ensure their immediate replacement with competent and diligent officers ,” the statement read .