The Bank of Ghana (BoG) is supporting initiatives to enable Ghanaian businesses to settle trade transactions with China in cedis, as part of efforts to reduce dependence on the US dollar for bilateral payments.
BoG Governor, Dr Johnson Pandit Asiama, said some banks have begun piloting arrangements that allow Ghanaian importers to pay for goods sourced from China directly in Ghana cedis.
Speaking at the 132nd Monetary Policy Committee (MPC) press briefing, Dr Asiama said Stanbic Bank is currently operating a pilot programme that allows importers to make payments for Chinese goods without first converting their cedis into US dollars.
“As we speak, if you want to buy anything from China, just go to Stanbic Bank with your cedis. You are able to do that,” he said.
He disclosed that Ghana Commercial Bank is also developing a similar arrangement to facilitate trade payments between Ghana and China.
According to the Governor, the initiative has become important given the growing volume of trade between the two countries and the need to create more efficient payment channels.
He said the central bank would also engage its counterparts in China to explore opportunities arising from the zero-tariff policy regime.
Dr Asiama noted that the Ministry of Trade and other relevant institutions would have an important role in ensuring that Ghana maximises the benefits of the emerging trade opportunities with China.
“As the central bank, we’re doing a number of things,” he said, adding that the BoG would continue collaborating with relevant institutions to strengthen financial and trade ties between the two countries.
The cedi-based payment arrangements form part of broader measures to facilitate cross-border transactions and reduce the reliance of Ghanaian businesses engaged in China trade on the US dollar.
READ ALSO:
Gold-driven cedi datability masking deep structural fragility – IERRP warns
