Foreign exchange dealers have disclosed that some Chinese traders in Nigeria are increasingly accepting naira for transactions instead of demanding US dollars, a trend they say is helping to ease pressure on the local currency.
The President of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadebe, told Nairametrics that Chinese businesses, particularly in the mining sector, are receiving naira in exchange for yuan under a swap arrangement between both countries. He added that discussions are ongoing to renew the agreement, which has helped improve liquidity in the forex market. “Many Chinese operators now prefer to take naira and give yuan, which is why we are seeing some liquidity in the market,” Gwadebe said.
He also pointed out that the growing popularity of peer-to-peer (P2P) foreign exchange transactions is influencing the market. The model allows individuals and businesses to trade currencies directly online, bypassing banks or licensed forex operators.
Another forex trader, identified as Yusuf, however, played down the broader effect of the yuan–naira exchange. According to him, while it may provide some relief, the US dollar remains the dominant currency of choice for Nigerians and importers due to its global acceptance and liquidity.
