The Ghana Union of Traders Association (GUTA) has heightened calls for increased access to the Chinese Yuan for traders who mostly import their wares from China.
According to the President of the Association, Dr. Joseph Obeng, such a move is expected to reduce pressure on the Cedi, as traders will not have to get Dollars from Ghana to send to China for payment of their wares.
Most of Ghana’s imports currently come from China because of its cheaper cost when compared to local substitutes.
Dr. Obeng believes the availability of the Chinese Yuan, in addition to the fiscal measures set by the government, will help check the Cedi’s depreciation which the country has battled with for months now.
“All that we’re trying to do is to ease the pressure on the dollar. We trade in other currencies; CFA, Euro, and Pound. Why can’t we trade in Yuan? It is the biggest destination where we source our goods. It could have been the best option so I don’t know what is pulling us back.”
This is not the first time Dr. Obeng has made these calls. He earlier suggested 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.