Nigeria Central Bank Diversifies Reserves: Sells Dollars, Buys Chinese Yuan

Tyler Durden's picture




 

It seems the "dollar is a reserve currency for ever and ever" propaganda has not reached Africa, also known as Southern China as explained here two years ago, where moments ago the Central Bank of Nigeria issued the following surprise announcement:

  • CENTRAL BANK OF NIGERIA TO SELL DOLLARS TO DIVERSIFY RESERVES
  • NIGERIA CENTRAL BANK TO RAISE SHARE OF YUAN TO 7% FROM 2%
  • NIGERIA CENTRAL BANK TO DIVERSIFY RESERVES INTO YUAN
  • NIGERIA CENTRAL BANK CONSIDERING DIM SUM BOND: MOGHALU

But why would anyone buy Yuan when there are so many ever-more diluted dollars available? And now, let's open it up for the most creative Nigerian email scam involving Chinese Yuan...

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Tue, 01/28/2014 - 09:30 | 4374596 cossack55
cossack55's picture

They have no access to a Bitcoin ATM?

Tue, 01/28/2014 - 09:32 | 4374610 smlbizman
smlbizman's picture

who would they swap with?

coss ur back...

Tue, 01/28/2014 - 09:36 | 4374630 Croesus
Croesus's picture

I never thought I would see the day, when I said: 

 

"Other people should follow in Nigeria's example"... 

Tue, 01/28/2014 - 09:42 | 4374660 TeamDepends
TeamDepends's picture

Niger(ia), please!

 

 

 

Tue, 01/28/2014 - 09:46 | 4374686 Headbanger
Tue, 01/28/2014 - 09:49 | 4374691 Gankfest
Gankfest's picture

It's only a matter of time before everyone else follows suit...

Tue, 01/28/2014 - 09:54 | 4374727 TruthInSunshine
TruthInSunshine's picture

This is ZH at its absolute worst. Nigeria is doing this in exchange for Chinese direct investment in its infrastructure, and more importantly, as ZH ITSELF has pointed out (although ZH seems bipolar on this subject), China is FLOODING the zone with yuan.

Tue, 01/28/2014 - 10:00 | 4374752 Ranger4564
Ranger4564's picture

Prop a ganda. It has always all been prop a ganda.

Tue, 01/28/2014 - 10:22 | 4374824 TruthInSunshine
TruthInSunshine's picture

By the math, there have been likely on order of 5 to 7 times the number of yuan and/or yuan denominated credit/debt instruments created in the last 5 years vs USD ones.

China is one giant bubble.

Besides, Nigeria's economy is probably the size of Akron , Ohio's.

Tue, 01/28/2014 - 11:59 | 4375281 Urban Redneck
Urban Redneck's picture

When was the last time you were in either Akron or Lagos?

Tue, 01/28/2014 - 12:14 | 4375364 TruthInSunshine
TruthInSunshine's picture

I did an oil pipeline derivative rehypothecation in Lagos on January 8th (locals didn't want yuan and were only accepting USD) and was just in the Akron Lap'n'Dance Steakhouse on January 23rd.

Tue, 01/28/2014 - 12:27 | 4375433 Urban Redneck
Urban Redneck's picture

Then how could you come to the conclusion that the economy in Akron is anywhere near as large or sophisticated as the that of Nigeria?

They could't even grow bananas in Akron the last time I passed through, and given the amount of urban decay the soil there should be able to support any type of plant life known to man (unless toxic waste impedes plant growth).

BTW -- rehypothecation??? Did some paper-oil sucker buy into the NNPC privatization scam at face value and not realize the amount of "leakage" involved in Nigerian pipelines so now they need to find an bigger sucker?

Tue, 01/28/2014 - 13:17 | 4375677 TheFourthStooge-ing
TheFourthStooge-ing's picture

You can say what you wanna
Yeah, you can put her down
But one thing ya better remember
She's still my hometown

My hometown
Is the greatest in the land
The people all there
They treat you all square
And give you a place to stand

My hometown
It's more than a town you know
It's my hometown
It's my hometown
It's Akron Ohio

My hometown
It's a special kind of place
Hard working folks
With chips on their shoulders
People crammed in subhuman space

My hometown
It's more than a town to me
It's more than plain
It's a city of pain
It's one big factory

My hometown
Is the greatest in the land
The people all there
They treat you all square
And give you a place to stand

My hometown
It's more than a town you know
It's my hometown
It's my hometown
It's Akron Ohio

http://www.youtube.com/watch?v=EuCNQqx5UrE

Tue, 01/28/2014 - 10:23 | 4374831 Muddy1
Muddy1's picture

Prop a panda?

Is there a relationship here?  http://www.zerohedge.com/news/2014-01-26/markets-are-falling-which-means...

How dare those Nigerians disparage the US petrodollar!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

Tue, 01/28/2014 - 09:47 | 4374688 Gankfest
Gankfest's picture

It's only a matter of time before everyone else follows suit...

Tue, 01/28/2014 - 09:54 | 4374728 TeamDepends
Tue, 01/28/2014 - 11:29 | 4375152 Woodhippie
Woodhippie's picture

Dude, that's fucking hilarious.

Tue, 01/28/2014 - 09:44 | 4374662 AlaricBalth
AlaricBalth's picture

Agabi and Associates.
Solicitors and Advocates.
5th floor, Unity House.
Lagos.

Dear Tyler Durden,

I am Mr. Paul Agabi, a Lawyer by profession. I am the personal attorney to Mr. Poindexter Durden , a national of your country, who used to work with Chevron Oil Exploration Company in Nigeria, herein after shall be referred to as my client.

On the 21st of April 2013, my client, his wife and their only child were involved in a car accident along Lagos - Ibadan express road. All occupants of the vehicle unfortunately lost there lives.

Since then I have made several enquiries to your embassy to locate any of my clients extended relatives. This has proved unsuccessful. I came to know about you through an enquiry I was making in the internet, and I found out you shared the same surname with my client, which is why I have decided to contact you, in order to assist in repatriating the money and property left behind by my client before they get confiscated or declared unserviceable by the bank.

Particularly, in a local commercial bank here where the deceased had an account valued at about 115.5 Million Chinese Yuan, has issued me a notice to provide the next of kin or have the account confisticated within the next ten official working days.

Since i have been unsuccessful in locating the relatives for over 2 years now I seek your consent to present you as the next of kin of the deceased since you have the same last name so that the proceeds of this account valued at 115.5 Million Chinese Yuan can be paid to you and then you and me can share the money, on the ratio of 50% for me, and 50% for you.

I have all necessary legal documents that can be used to back up any claim we may make. All I require is your honest co-operation to enable us see this business through. I guarantee that this will be executed under a legitimate arrangement that will protect you from any breach of the law.

Please get in touch with me by email and send to me your telephone and fax numbers to enable us discuss further about the details of this transaction. 

Best regards, Mr.Paul Agabi.

Tue, 01/28/2014 - 10:48 | 4374675 SoilMyselfRotten
SoilMyselfRotten's picture

Could it be Sovereigns see the handwriting on the wall with China loading up on gold to back its Yuan?

 Buy Yuan, Bye Dollar

Tue, 01/28/2014 - 11:50 | 4375253 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Chinese are investing alot into infrastructure among other projects in Nigeria. The Chinese colonize and invest in that cockroach infestation by building infrastructure so it only goes to reason as the infestation of Chinese nationals in Nigeria that the banks would need to have more of the their native currency on hand.

The West on the hand just strips mines the place and doesn't invest in any long term stability whole forcing the nations to take their currency by gunpoint.

Tue, 01/28/2014 - 12:46 | 4375504 Clowns on Acid
Clowns on Acid's picture

Kinda but not really. You are getting mentally lazy.

Tue, 01/28/2014 - 13:44 | 4375737 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Unfortunately I have to agree I just typed that off the cuff without filtering it first. There is method to hanging it out there unfiltered in that the revision process of the ideas that other unsolicited viewpoints may pick up on something you miss but mental laziness or intellectual apathy seems to be all the rage as far as that process goes. It is not about destination it is about journey from here to there.

 

Tue, 01/28/2014 - 13:33 | 4375745 Crash Overide
Crash Overide's picture

"Africa, also known as Southern China"

 

To the US, it's AFRICOM... land and resources to be conquered that's why we always send guys with guns and then bankers to get you in the debt program.

China showed up with cash and the resources to build infrastructure, sorry... China 1 USA 0

 

Political power grows out of the barrel of a gun.

Mao Zedong whoops I mean, The United States of America

Tue, 01/28/2014 - 10:22 | 4374830 Papasmurf
Papasmurf's picture

They have a lot of accidents on the Lagos - Ibadan express road.  I'm sorry to hear of your loss.

Tue, 01/28/2014 - 13:19 | 4375498 TheFourthStooge-ing
TheFourthStooge-ing's picture

With Nigeria's increasing exposure to yuan, Chinese citizenism citizens should expect to receive some interesting "business proposals" of an urgent nature:

Dear A.N. Anonymous,

I am Mr. Paul Agabi, a Lawyer by profession. I am the personal attorney to Mr. Dung Wei Lo, a national of your country, who used to work with China National Petroleum Corporation in Nigeria, herein after shall be referred to as my client...

Tue, 01/28/2014 - 09:42 | 4374665 the not so migh...
the not so mighty maximiza's picture

yeah, its a mind fuck 

Tue, 01/28/2014 - 09:46 | 4374678 Oh regional Indian
Oh regional Indian's picture

Actually Fonestar's auto-dialler had not reached N yet, it would seem.

In other views, if one looks around at the sovereign action over say the past 9 months, the Us seems to have lost it's fangs (well, pretending to that is) about dollar abuse and consequences thereof, swiftly de-livered.

Smells like rat-jump-ship moment is at best months away....beware the ides of march 2014?

ori

http://aadivaahan.wordpress.com/2014/01/26/the-homo-sexual-oxymoron-dis-...

 

 

Tue, 01/28/2014 - 09:30 | 4374601 Slamshizzlestein
Slamshizzlestein's picture

It would be helpful to know what % allocation are/were in USD

Tue, 01/28/2014 - 09:39 | 4374653 Lost My Shorts
Lost My Shorts's picture

Probably Nigeria would be considered dumb money as central banks go, so maybe it's not the most ringing endorsement.  More like a top tick.  Probably the Chinese realized that with a credit crisis and massive bailouts coming, they no longer need to sell yuan for dollars to keep the exchange rate down.  So they gave some Nigerian a few gold watches and persuaded him to take soon-to-be devalued yuan for oil.

Tue, 01/28/2014 - 09:31 | 4374605 ziggy59
ziggy59's picture

News of Nigerian leader killing his own people in 3,2,1....

Tue, 01/28/2014 - 09:35 | 4374628 tallen
tallen's picture

And US Bombs Nigerian "terrorists" in 5,4,3,2,1....

Tue, 01/28/2014 - 09:36 | 4374641 IridiumRebel
IridiumRebel's picture

We must "liberate" these poor misguided folks...for the children.

 

liberate is newspeak for bomb the hell out of them

Tue, 01/28/2014 - 09:40 | 4374656 kliguy38
kliguy38's picture

"surgical strike"

Tue, 01/28/2014 - 10:37 | 4374894 Offthebeach
Offthebeach's picture

Mothball out the B-52 drones, Yeah Baby! Imagine how many Hellfires a B-52 could carry? Just keep mid air refueling it. Darken their skys with 8 engine, JP durty burning Federal birds of prey! Maybe paint the whole aircraft, all of it, as a American Bald Eagle. ( Also shut down Congress and just run the world out of the Ecceles Building )

Get Some!

Tue, 01/28/2014 - 12:47 | 4375510 roadhazard
roadhazard's picture

"Time for some problems on the Nigeria bridge."

Tue, 01/28/2014 - 09:36 | 4374636 unplugged
unplugged's picture

Al Kayduh stronghold found in Nigeria, holed up in their CB gold depository, in 3, 2, 1...

Tue, 01/28/2014 - 09:37 | 4374639 The man with po...
The man with pointy horns's picture

Obozo will order drone strikes, liberation of Nigerian oil and the imposition of democracy for this act of petrodollar defiance.

FREE the oppressed crude!

Tue, 01/28/2014 - 09:31 | 4374606 TeamDepends
TeamDepends's picture

Yellen (looks forlorn):  Nigeria, I thought we were friends.

Tue, 01/28/2014 - 09:33 | 4374617 RabbitChow
RabbitChow's picture

With the contracts they have, Nigeria will just accept Yuan for oil -- no need to convert through USD or BTC.

Tue, 01/28/2014 - 10:16 | 4374806 bluskyes
bluskyes's picture

That's terrorist talk. queue the drones

Tue, 01/28/2014 - 09:34 | 4374623 fijisailor
fijisailor's picture

LOL. Nigeria the land of disorganization and lawlessness.  I don't think this is the best example of loss of faith in the USD.

Tue, 01/28/2014 - 12:43 | 4375482 Clowns on Acid
Clowns on Acid's picture

fiji - Yes Nigeria is the land of Organized disorganization and lawlessness. The politicians are just the lackeys for the real money / power. Nigeria is the wealthiest country in Africa, and that wealth is not terribly well distributed among the average nose pickers.

This is a significant development in my opinion. China might collapse internally due to credit contraction and or environmental disaster... but they will be able o buy land mass, energy, and minerals at a great discount in Africa.

Remember that according to Obama and his pack of smirking jackals, only the White man is bad.      

Tue, 01/28/2014 - 09:33 | 4374626 ziggy59
ziggy59's picture

Seems like my cousin in Nigeria got the memo... Email...

"Deer Cuzin,

I have 1million juan for you please send me your bank info to split your inheritance."

Tue, 01/28/2014 - 10:23 | 4374828 Temporalist
Temporalist's picture

I guess everywhere has problems with immigration...

Tue, 01/28/2014 - 09:35 | 4374629 thatthingcanfly
thatthingcanfly's picture

"I go chop your dollar! I make your money disappear!"

Tue, 01/28/2014 - 09:35 | 4374633 Kaiser Sousa
Kaiser Sousa's picture

"NIGERIAN PLEASE!!!!"

keep stacking......

Tue, 01/28/2014 - 09:35 | 4374634 Rising Sun
Rising Sun's picture

NIgeria - who gives a fuck

Tue, 01/28/2014 - 09:47 | 4374694 SheepDog-One
SheepDog-One's picture

Oh yea, we ARE in the middle of world currency war and power shift, all this 'Stock markets are pumped, so we're winning' is just delusion.

Tue, 01/28/2014 - 10:01 | 4374760 Bearwagon
Bearwagon's picture

Exactly. Good for you, to be scoring at home in this well underway war. Stay tuned for more ...

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