Ghana takes step toward reducing dollar dependence in China trade
By Marcella Mwinkoma Babing For years, one of the biggest headaches for Ghanaian businesses importing from China has been the same six-letter word: dollar. You need dollars to pay your Chinese supplier. You need dollars to navigate international payments. And when demand for dollars rises, businesses often feel the pressure through higher costs, longer payment […]
Ghana is taking steps to reduce its reliance on dollars in trade with China, according to a recent announcement. The move could potentially lower costs and payment pressures for businesses importing goods from China. Stanbic Bank Ghana has initiated a pilot program allowing businesses to make payments in their local currency, the Ghanaian cedi, with Chinese suppliers receiving payment in yuan through China’s CIPS.
This shift could make trade with China less reliant on dollars, offering businesses more options and potentially reducing their vulnerability to dollar exchange rate fluctuations. However, the real impact will depend on practical outcomes such as faster transactions, lower costs, and benefits for smaller businesses. The pilot program is a small step towards diversifying Ghana's currency usage in international trade, which could ultimately empower businesses and reduce the pressure of the dollar in Ghana-China trade relationships.
Written by urgent.news from GBC Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
