Ghana Pilots Cedi-to-Yuan Payments to Bypass US Dollar in Trade with China
Ghana is taking a significant step to reduce its reliance on the US dollar in trade with China. The Bank of Ghana Governor, Dr. Johnson Pandit Asiama, announced that Stanbic Bank Ghana is already piloting a payment system that allows Ghanaian businesses to pay for Chinese imports directly using the Ghanaian cedi, bypassing the need for US dollars.
According to Asiama, businesses can now go to Stanbic Bank with their cedis to purchase goods from China. Ghana Commercial Bank (GCB) is also developing a similar payment arrangement, supported by Stanbic’s access to China’s Cross-Border Interbank Payment System (CIPS). This system, authorized by the People’s Bank of China, facilitates eligible cross-border transactions in Chinese yuan.
Stanbic Bank Ghana CEO Kwamina Asomaning highlighted that CIPS provides a more direct payment route to Chinese counterparties, reducing the need for US correspondent or intermediary banks. Businesses can initiate yuan payments from their Ghana cedi accounts, without needing a yuan-denominated account. Eligible payments submitted by 2:00 p.m. GMT can be processed for next-business-day settlement, subject to regulatory and compliance requirements.