Chinese Traders Now Accepting Naira Instead of Dollars – Forex Operators

Foreign exchange dealers have revealed that some Chinese traders operating in Nigeria are increasingly accepting naira for transactions instead of demanding US dollars, a development 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 collecting naira in exchange for yuan under a swap mechanism between both countries. He disclosed that talks are ongoing to renew the swap agreement, which has contributed to 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 explained.

He also noted that the rise of peer-to-peer (P2P) foreign exchange transactions is further influencing the market. The model allows individuals and businesses to exchange currencies directly online, bypassing traditional banking or licensed forex operators.

Another forex trader, identified as Yusuf, however, downplayed the wider impact of the yuan–naira arrangement. He argued that while it may have some effect, the US dollar remains the most sought-after currency for Nigerians and importers because of its global acceptance and liquidity