The Maritime Reporters’ Association of Nigeria (MARAN) will be examining the Nigeria-China Currency Swap deal at an event on 15 April.
It is coming on the heels of global trade frenzy ignited by United States President Donald Trump’s controversial tariff hike on imports into the country.
Themed, “Navigating the Nigeria-Peoples Republic of China Currency Swap: Opportunities and Challenges for Import, Export and Maritime Business”, the event is in furtherance of MARAN’s agenda-setting role and interrogation of key government policies as they affect the maritime industry.
The currency deal aims to provide Naira liquidity to Chinese businesses and yuan liquidity to Nigerian businesses while reducing both countries dependence on the dollar as a basis for transactions.
Critical stakeholders in the import and export business, policy-makers, and government agencies scheduled to brainstorm at the event will examine the China/Nigeria landmark deal as it affects the maritime industry in the face of the expected backlash of Trump’s tariff hike on the “almighty” American dollar.
Expected participants at the event include the officials of the Central Bank of Nigeria, the Nigeria-China Strategic Partnership, the Chinese Embassy, Ministry of Finance Incorporated, importers, exporters, maritime operators, policy-makers, economists, financial institutions and trade organisations. amongst others.
According to MARAN President, Godfrey Bivbere, at the end of the event, there would be enhanced understanding of the Nigeria-China currency swap and its impact on stakeholders in import, export, and maritime businesses.
He said that the association’s decided to interrogate the policy further, given that China has been Nigeria’s biggest import partner over the years.
According to him, the debilitating effect of the American dollar on importation has been a source of worry, hence the imperative to examine this policy further.
He further said: ‘Nigeria and Peoples Republic of China recently renewed their currency swap agreement worth 15 billion Yuan ($2 billion), enabling the direct exchange of the Chinese Yuan and the Nigerian naira while bypassing the U.S dollar.
‘This groundbreaking deal is expected to foster stronger bilateral trade, reduce transaction costs, and boost economic cooperation’.
Bivbere said that the discourse at the event would evaluate the implications of the currency swap, while weighing in on how the currency swap deal will affect transaction costs, trade volume, and the operational dynamics of importers, exporters, and maritime businesses at large.
‘It has become imperative for Nigeria to adopt innovative strategies to safeguard its economic stability and reduce dependency on the U.S. dollar for international trade. One crucial tool that Nigeria must prioritise is negotiating currency swap agreements with major economies’, he added.
The event is also expected to identify potential risks and opportunities arising from China’s growing economic influence in Nigeria and actionable recommendations for stakeholders to navigate changes in the trade and maritime landscape while strengthening collaboration among stakeholders to maximize trade benefits and economic growth.
