Business

Chinese Yuan weakens to 7.1698 against dollar

Published

4 years ago

on

October 28, 2022

By

Feyijimi Emmanuel

Yuan and Dollar

The central parity rate of the Chinese currency renminbi or the Yuan, weakened 128 pips to 7.1698 against the dollar on Friday, according to the China Foreign Exchange Trade System.

In China’s spot foreign exchange market, the Yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.The central parity rate of the Yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

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"We have all paid for these processes, and my company has been verified. More than 70 per cent of the companies have completed the verification exercise," she said. The recapitalisation programme, introduced by NAICOM under the Nigerian Insurance Industry Reform Act, 2025, is designed to strengthen the financial health of insurance companies by raising minimum capital requirements. Regulators believe the initiative will improve insurers' ability to settle claims promptly, underwrite larger risks, and restore public confidence in Nigeria's insurance industry. Monthly Capital Monitoring Nwachukwu explained that since December 2025, insurance companies have been submitting monthly capital position reports to NAICOM, reflecting changes arising from underwriting activities, claims payments, investments, and asset transactions. The reports, she noted, have enabled the regulator to closely monitor each company's compliance journey ahead of the July 31 deadline. In addition, insurers were required to lodge statutory deposits with the Central Bank of Nigeria (CBN) amounting to 10 per cent of the revised minimum capital requirement. According to the NIA chairman, most member companies have complied with the statutory deposit requirement and have submitted evidence of payment to NAICOM. She added that the capital verification exercise is being conducted by independent auditors from the global accounting firms KPMG, PwC, Deloitte, and EY, while the insurance regulator is expected to announce the final outcome of the recapitalisation exercise after the compliance deadline. Industry Poised for Transformation Nwachukwu said NAICOM has continued engaging insurers still facing capital shortfalls in a bid to ensure an orderly transition that safeguards policyholders and preserves financial stability within the sector. She expressed optimism that the exercise would ultimately produce a stronger, more resilient insurance industry capable of supporting Nigeria's growing economy. The recapitalisation drive has already encouraged several companies to raise fresh capital through rights issues, private placements, mergers, acquisitions, and strategic partnerships. One of the latest companies to achieve compliance is Linkage Assurance Plc, which announced on Monday that it had successfully completed a ₦16.2 billion Rights Issue, enabling it to meet NAICOM's revised capital threshold ahead of the deadline. Industry analysts expect more consolidation across the sector, with financially weaker operators likely to pursue mergers or acquisitions rather than lose their operating licences. NAICOM Rules Out Deadline Extension NAICOM has consistently maintained that the July 31, 2026 deadline remains non-negotiable, dismissing speculation that operators would be granted additional time to comply. Earlier this year, the Commissioner for Insurance, Olusegun Omosehin, assured stakeholders that while the commission remains committed to protecting policyholders and preventing the collapse of licensed insurers, companies must meet the revised capital requirements under the new regulatory framework. The new capital thresholds represent one of the most significant reforms in Nigeria's insurance sector in decades. Under the Nigerian Insurance Industry Reform Act, 2025: Non-life insurance companies are required to increase their minimum capital from ₦3 billion to ₦15 billion. Life insurance companies must raise their capital base from ₦2 billion to ₦10 billion. Reinsurance companies are expected to increase minimum capital from ₦10 billion to ₦35 billion. 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