The Bank of Ghana is facilitating new payment arrangements that could allow Ghanaian businesses to settle trade transactions with China directly in Ghana cedis, reducing their reliance on the US dollar and other third-party currencies.
Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, says commercial banks have begun piloting systems that allow Ghanaian importers to pay for goods from China in cedis without first sourcing US dollars.
Speaking at the 132nd Monetary Policy Committee press briefing, Dr. Asiama disclosed that Stanbic Bank is currently piloting the arrangement, with Ghana Commercial Bank also working on a similar initiative.
He explained that the system is intended to make cross-border payments more efficient as trade between Ghana and China continues to expand.
“Stanbic Bank is piloting a programme whereby our exporters and importers no longer have to carry US dollars to pay for their imports. They can actually make those payments in Ghana cedis from here.”
According to the Governor, Ghanaian businesses can currently approach Stanbic Bank with cedis to make payments for goods imported from China under the pilot arrangement.
“We are aware that Ghana Commercial Bank is also starting something quite similar. So, we are taking these developments very seriously, in line with the growing trade relationship with China,” he added.
BoG to engage Chinese counterparts
The Governor also said the Bank of Ghana will engage its Chinese counterparts on measures to support trade under China’s zero-tariff regime for African countries with which it has diplomatic relations.
He explained that central bank governors have opportunities to discuss such issues during international meetings, including the IMF meetings.
However, Dr Asiama stressed that the Ministry of Trade also has an important role to play in ensuring Ghana fully benefits from the zero-tariff arrangement.
The initiatives form part of broader efforts to facilitate Ghana-China trade and develop more efficient payment channels as bilateral commercial activity expands.
SOURCE: CITINEWSROOM
