Bank of Ghana backs cedi-based payments for Ghana-China trade

The Bank of Ghana is backing initiatives to allow Ghanaian businesses to settle trade transactions with China using the local currency, the cedi, instead of the US dollar. This move aims to reduce dependence on the dollar for bilateral payments between the two countries. BoG Governor Dr Johnson Pandit Asiama revealed that some banks, including Stanbic Bank and Ghana Commercial Bank, have already begun piloting arrangements that permit importers to pay for Chinese goods directly in cedis.

"If you want to buy anything from China, just go to Stanbic Bank with your cedis," Dr Asiama stated. The initiative is crucial given the increasing trade volume between Ghana and China, according to the Governor. The central bank plans to collaborate with its Chinese counterparts to explore opportunities arising from the zero-tariff policy regime.

The Ministry of Trade and other relevant institutions will play a key role in maximizing the benefits of the emerging trade opportunities with China, according to Dr Asiama. The cedi-based payment arrangements are part of broader measures to facilitate cross-border transactions and reduce reliance on the US dollar for Ghanaian businesses engaged in China trade. The BoG intends to roll out new cedi banknotes in November.