For all those arguing the U.S. isn’t on the decline, one of the biggest initial indicators has been our economic global influence. Say what you want about the dollar, it still beats out most other currencies. Most others, that is, but the Yuan.

This week, Nigeria seemed to confirm this by aiming to replace 10 percent of their reserves, historically held nearly completely with U.S. dollars, with Chinese Yuan instead. Bloomberg reports:

The nation plans to start holding the Chinese currency next quarter, predicting it will appreciate given the strength of China’s economy, central bank Governor Lamido Sanusi said today in an interview in Hong Kong, adding that the target was set more than a year ago. He said the yuan will “inevitably” become a reserve currency and that increased convertibility outside China had boosted its appeal.

Source

While the move is clearly another sign of the lack of surety of the US dollar, Sanusi said that choosing the Yuan does not mean Nigeria thinks America is on the decline.

“Confidence in China doesn’t mean lack of confidence in America. Europe and America will continue to be important parts of the world. Having said that, it will be almost living in a dream world to ignore China. It’s the second- largest economy in the world and it’s well-managed.”

 

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  • China is after resources (raw material etc), Africa has those resources, in turn African countries get roads/infrastructure and much needed investment. The Chinese don’t have any political conditions or impose policies like Western institutions (IMF, World Bank etc) do, policies and conditions that have devastated African countries, theirs, the Chinese is economically driven. It’s a business, and there is a new superpower in town competing with the traditional Western Powers to get these resources, hence we hear all the noise about Chinese human rights abuses etc (and rightfully saw, but they are not the only one are they, I don’t buy the hypocrisy). ….in short China is after resources, in turn Africa gets development, the problem lies with African leaders/governments to protect African interests (not just their own little interests and pockets, but interests of the people and country), …. the Chinese are not at fault, they are after their business interests, Africa needs to do the same, is that happening? Ahhh with corrupt leaders I hardly doubt that.

  • iloveny

    doesn’t matter if it is USD or yuan ,they are going to exploit them anyway

  • Shayan

    Hi everyone, sorry im not a woman, and im not black nor am i american.. I am a Pakistani man who is nicknamed Klutch, and thats what caught my interest in the magazine.. I know im not the target audience of this magazine, and I am also from a country which is considered terrorist, and someone here suggested to move all american bases to Pakistan (and some other regional muslim countries).. but frankly, like Africa, we were also under the British colonial ambit, and frankly, that did more harm to my country than good.. We have a mind set where we set our standards in line of predominantly white western nations, and im not discounting their lead in technology and general progress, but this subconsciously existing inferiority complex exists on a mass scale in all ex-colonies.. My country, like all others, reacted in its own way to that mindset, where our Islamic roots makes us challenge Western ideals and practices, whether it is right or wrong, but that brings in a bit more perspective.. economic alignment is a very important global issue, and being previously aligned to the west now it is more difficult for us to be more economically independent, as major policy is dictated to you and if not followed may end up in a mess for your whole country.. in this way, I would say that Chinese alignment, albeit for their benefit, can be used for own benefit too and considering that China is not to interfering in local policy, there is a lot more independence with ones own growth.. that being said, this is just an opinion..

  • Jade

    Why are people solely viewing this as the opportunity for foreign exploitation and ravaging of the African continent as if that has not been going on for decades now? Have a little more faith in the peoples of Africa. This can very well be the opportunity for Africa to be more engaged with global economic community.

    Don’t believe Western press who always have it bad for Africa. Of course they are speaking about Sino-recolonization because for Africa to create new relationships with other regions of the world and to become stronger economically is an ABSOLUTE THREAT to Western hegemony of superiority and financial markets.

    I’m not saying we should not view Chinese presence without any caution, but maybe we should view this as an opportunity for Africa to become self-determining.

  • Gen

    Funny how the article specifically mentions Nigeria but some people are still going on about Africa. Josie’s parents are probably the only Nigerians that wish the country was like Jamaica (disclaimer: not throwing shade).

    Well, lets see where it goes first (trying to be less pessimistic), I call ‘bullcrap’ on that Sanusi quote (its not that you’re rubbish, its just that they’re better’), seems that a lot of countries are now scared of the US economy.