Nigeria and China Bilateral Currency Swap: Perceived Economic Implications and Prospects:
Clementina Kanu1, Anthony Chukwuma Nwali2, Johnson Nwoke3, Charles Ogbaekirigwe4, Chinonso Ugwuoke5
1Clementina Kanu, Ph.D., Department of Accountancy, Business Administration, Banking and Finance, Alex Ekwueme Federal University, Ndufu Alike Ikwo, Ebonyi State, Nigeria.
2Anthony Chukwuma Nwali, Ph.D., Department of Accountancy, Business Administration, Banking and Finance, Alex Ekwueme Federal University, Ndufu Alike Ikwo, Ebonyi State, Nigeria.
3Johnson Nwoke, Ph.D., Department of Accountancy, Business Administration, Banking and Finance, Alex Ekwueme Federal University, Ndufu Alike Ikwo, Ebonyi State, Nigeria.
4Charles Ogbaekirigwe, Ph.D., Department of Accountancy, Business Administration, Banking and Finance, Alex Ekwueme Federal University, Ndufu Alike Ikwo, Ebonyi State, Nigeria.
5Chinonso Ugwuoke, Department of Accountancy, Business Administration, Banking and Finance, Alex Ekwueme Federal University, Ndufu Alike Ikwo, Ebonyi State, Nigeria.
Manuscript received on February 10, 2020. | Revised Manuscript received on February 20, 2020. | Manuscript published on March 30, 2020. | PP: 1880-1891 | Volume-8 Issue-6, March 2020. | Retrieval Number: F7603038620/2020©BEIESP | DOI: 10.35940/ijrte.F7603.038620
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This study examined Nigeria and China Bilateral Currency Swap: Economic Implications and Prospects. Survey design was used to determine the impact of Nigeria – China economic ties on Nigerian imbalance of payment, foreign reserve, consumption of local products and job creation among others. The responses from the audience reveal that Nigeria and China Bilateral Currency Swap agreement will encourage job creation and importation activities in the country. While more than 50% of the respondents echoed that this agreement will increase imbalance of payment, reduction in foreign reserve and less consumption of domestic products. The study concludes that this agreement will cause future development of trade between the two countries and improve liquidity. In order to enhance employment opportunity in the country, the local engineer should be trained and employed to collaborate with Chinese. The economic cord will make accessibility of fund easier. Therefore, importers, exporters and other type of business ventures are expected to use the opportunity and boost their operations. Government and business managers should make use of the available fund and diversify in other sectors like agriculture, establishment of local industries and focus on the products for exportation. The study recommends the implementation of suitable policy on importation, to avoid the idea that Nigeria will become a dumping ground for Chinese products.
Keywords: Currency Swap, Foreign Reserve, Imbalance Of Payment, Economic Development, Job Creation, Financial Stability And Liquidity.
Scope of the Article: Construction Economics.