BoG pilots cedi-based payment system for Ghana-China trade

The Bank of Ghana (BoG) is working with commercial banks on new payment arrangements that could enable Ghanaian businesses to pay for imports from China directly in Ghana cedis, reducing the need to source US dollars for such transactions.

BoG Governor Dr Johnson Pandit Asiama disclosed that Stanbic Bank is currently piloting a system under which Ghanaian importers can use cedis to settle payments for goods purchased from China.

Speaking at the 132nd Monetary Policy Committee press briefing, Dr Asiama said Ghana Commercial Bank was also developing a similar arrangement as the country seeks more efficient ways of settling its growing trade with China.

“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.”

He explained that businesses can currently approach Stanbic Bank with cedis and use the pilot arrangement to make payments for goods imported from China.

“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.

Dr Asiama said the new payment channels could help simplify cross-border transactions as commercial ties between Ghana and China continue to expand.

The Governor further disclosed that the Bank of Ghana would engage its Chinese counterparts on possible measures to deepen trade and support the implementation of China's zero-tariff regime for African countries with which it maintains diplomatic relations.

He said central bank governors have opportunities to discuss such matters during international engagements, including meetings of the International Monetary Fund.

Dr Asiama, however, stressed that the Ministry of Trade also has a critical role to play in ensuring that Ghana maximises the opportunities presented by the zero-tariff arrangement.

The payment initiatives form part of broader efforts to strengthen Ghana-China commercial relations while developing alternative channels for settling trade transactions without relying solely on third-party currencies such as the US dollar.