BoG backs cedi payments for Ghana-China trade

The Bank of Ghana has endorsed initiatives to enable Ghana-China bilateral trade transactions using the cedi, aiming to lessen dependence on the US dollar for such exchanges. Governor Dr Johnson Pandit Asiama disclosed that banks are already trialling systems allowing Ghanaian importers to remit payments for Chinese goods directly in cedis.

He made this revelation at the 132nd Monetary Policy Committee press briefing. According to him, Stanbic Bank is currently piloting a scheme wherein importers no longer need to procure US dollars to facilitate purchases from China. "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 explained.

He also mentioned that Ghana Commercial Bank is exploring a comparable arrangement as Ghana strives to strengthen financial and trade ties with China. Dr Asiama emphasized the Bank of Ghana's seriousness towards the development due to the escalating trade relations between the two nations. He further stated that the central bank will collaborate with its Chinese counterparts to explore opportunities under the zero-tariff policy regime, while the Ministry of Trade will play a pivotal role in helping Ghana maximize benefits from the arrangement.

"As the central bank, we're doing a number of things," Dr Asiama said, further indicating the Bank's commitment to supporting the burgeoning Ghana-China trade relationship. This move is part of broader efforts to streamline cross-border payments and diminish the reliance of businesses involved in Ghana-China trade on the US dollar for transactions.