Bank of Ghana Supports Cedi-Funded Payments for China Trade
The Bank of Ghana is supporting new payment arrangements that allow Ghanaian importers to fund purchases from China with cedis.
In Brief
- •The Bank of Ghana is supporting new payment arrangements that allow Ghanaian importers to fund purchases from China with cedis.
- •Stanbic Bank is already operating an arrangement for China-related payments, while GCB Bank is working on a similar mechanism.
- •The initiative builds on a policy direction signalled earlier in the year, aiming to reduce dependence on third-party currencies.
Why It Matters
This development is significant for Ghana's trade with China, which is the country's largest trading partner. By allowing cedis to be used for China-related payments, businesses can reduce the need for US dollars as an intermediary currency, potentially simplifying the payment process and reducing conversion frictions. This could enhance the efficiency of Ghana-China trade and support the broader economic relationship between the two countries.
Key Details
- Bilateral Trade Volume
- US$11.84 billion in 2024
- Payment Mechanism
- Direct access to China's Cross-Border Interbank Payment System (CIPS)
Context & Background
Ghana and China have a long-standing economic relationship, with China being Ghana's largest trading partner. The initiative to support cedis-funded payments for China trade builds on earlier policy directions aimed at reducing dependence on third-party currencies and enhancing trade efficiency.
Original Reporting & Sources
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