CBN approves inclusion of Chinese Renminbi in external reserve

CBN approves inclusion of Chinese Renminbi in external reserve

The Central Bank of Nigeria (CBN) says it has approved the inclusion of the Chinese Renminbi (RMB) to the existing currency mix of the dollar, euro and pound sterling to diversify the external reserve.

The statement issued by Alhaji Mohammed Abdullahi, the CBN Head of Corporate Communication, in Abuja, noted that the approval would help to diversify the external reserve holdings of the bank.

Enhancing economic and trade relations

The statement said: “After due consultations with the Federal Government and other stakeholders in Nigeria, the CBN has gone ahead to engage the Chinese financial regulatory authorities with a view to building strategic and mutually beneficial relationships with key Chinese financial institutions. This move by the CBN to diversify the nation’s external reserves is consistent with the Transformation Agenda of President Goodluck Jonathan  and has the full support of the Federal Government of Nigeria.’’

The statement added that the initiative by the bank was expected to secure a strategic advantage for Nigeria in its economic and trade relations with the People’s Republic of China.

 According to the statement, the apex bank has signed a Memorandum of Understanding (MOU) with the People’s Bank of China (PBoC) to strengthen collaboration between the monetary authorities.

 It added that the MOU would foster greater cooperation in various areas of central banking.

Governor Sanusi Lamido Sanusi signed on behalf of the CBN while Governor Zhou XiaoChuan signed on behalf of the PBoC.

NAN/Shakira/Ekata