The Ghana Union of Traders (GUTA) has called for the fast-tracking of moves to ensure that Ghanaian traders are able to trade more in the Chinese Yuan when doing business with China.
Such a move is expected to reduce pressure on the Cedi because imports will not be done with US dollars.
Most of Ghana’s imports currently come from China because of cheaper cost when compared to similar local goods.
Speaking on The Point of View on Citi TV, GUTA’s President, Dr. Joseph Obeng, said, “even the central bank has accepted that [trade with China using the Yuan].”
“They are talking around that. Some banks have that initiative across, so it is the sure way to go,” Dr. Obeng added.
He noted that Ghana could explore a clearing system with China similar to the Pan-African Payment and Settlement System.
“We can also do a similar clearing system with China where we send our local currency to the local banks, and they have a clearing system with the Chinese banks where they clear with the local currencies.”
“I think this is the way forward, and central banks in Africa have started thinking in that manner. I think they have to fast track those initiatives that will lessen the pressure on the US dollar,” Dr. Obeng said.
Currently, the Cedi is trading at GHS 6.88 to the dollar.
This is up from about GHS 5.58 in the first quarter of 2021.