The Bank of Ghana (BoG) has begun supporting alternative payment arrangements that could enable Ghanaian businesses to settle transactions with Chinese suppliers directly in cedis, reducing the need to source US dollars for imports.
Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, disclosed that commercial banks had started piloting systems designed to facilitate Ghana-China trade through local-currency payments.
He said Stanbic Bank was already testing the arrangement, while Ghana Commercial Bank (GCB) was also developing a similar system.
Speaking at the 132nd Monetary Policy Committee press briefing, Dr Asiama said the initiative was intended to simplify cross-border transactions and respond to the growing volume of trade between Ghana and China.
Under the pilot being operated by Stanbic Bank, Ghanaian importers can approach the bank with cedis and use the funds to settle payments for goods sourced from China, without having to first obtain US dollars.
The Governor said the development represented an important step in creating more efficient payment channels for businesses engaged in international trade.
He noted that GCB was also moving to introduce a comparable arrangement, adding that the central bank was closely monitoring the developments because of the expanding commercial relationship between Ghana and China.
Beyond the payment system, Dr Asiama said the BoG would engage its Chinese counterparts on ways to strengthen trade under China’s zero-tariff policy for African countries with which it maintains diplomatic relations.
He said such discussions could take place through engagements among central bank governors at international meetings, including the IMF meetings.
Dr Asiama, however, indicated that the Ministry of Trade also had a significant role to play in ensuring that Ghana maximised the opportunities presented by China’s zero-tariff arrangement.
The emerging payment initiatives form part of broader efforts to facilitate bilateral trade while providing Ghanaian businesses with alternative mechanisms for settling transactions with Chinese counterparts.
