The Central Bank of Nigeria (CBN) Tuesday revealed plans to increase the Chinese Yuan’s proportion of the country’s external reserves from two percent to seven percent.
The move was influenced by the growing strength of the Chinese currency in global trade, the Deputy Governor (Operations), CBN; Dr. Kingsley Chiedu Moghalu said in an interview with Bloomberg in London.
However, Moghalu did not specify the timeframe for the change.
Nigeria currently holds about 85 percent of its reserves in dollars, he said.
Moghalu added: “It was clear to us that the future of international economics and trade will shift in large part to business with and by China.
“Ultimately the renminbi is likely to become a global convertible currency.”
The central bank started to diversify its reserves into Yuan in 2011 and is working with the People’s Bank of China to boost the holdings as soon as the relevant structures are in place, he said further.
Nigeria’s external reserves stood at $43.182 billion as at Monday.