Wednesday, January 29, 2014

Nigeria Slowly Shifting to Yuan

Another oil player announced making a first move to hook their coach to the petroyuan train. Nigeria is seeking to diversify its reserve holdings and will raise its yuan holdings up from 2% to 7% in total. This is a small step, and Nigeria is firmly in the petrodollar sphere, but it is a significant first step. Bloomberg reports on this, but for all the fear mongering in the media about the dollar's potential drop in reserve currency status or the coming Wile Coyote moment I the mid-'00s, these slow, steady reports do not yield major pundit output in 2014. What could be different? The one quote from the Nigerian official is all that is needed to explain the situation.

The key quote is from the central bank official Kingsley Moghalu,
“It was clear to us that the future of international economics and trade will shift in large part to business with and by China,” Moghalu said. “Ultimately the renminbi is likely to become a global convertible currency.”

When Nigerian central bankers see it, it is incredibly obvious. Small step but an eye on the future. China has a mess on its hands from its credit bubble, as does the rest of the world, but natural resource producers continue this slow and steady shift of more money into yuan. Nigerian exports of oil to the US have dropped in recent years due to the boom in US shale oil development. Nigeria also faces collapse or break up as ethnic fighting and religious battles rise. Their own people discuss the value of splitting the nation in two (Muslim vs. Christian), so making nice with a different potential patron is a great way to hedge bets for any coming conflict.

2 comments:

Inane Rambler said...

Scary times.

peterike said...

So at the end of the day, will the Chinese bankers -- nationalistic, pro-Chinese, growth oriented -- defeat the Jewish bankers -- international, anti-white, parasitical -- to own the global currency?

Possibly. White nations still have time to rebel against the parasite banking cabal and the Cathedral they empower, but the rustlings of revolution remain dim and distant, endlessly frustrated.

Personally, I think the ground all shifts very rapidly at some point, with Western nations falling into a kind of chaos, the end game of which nobody can predict.