The Ghana Union of Merchants (GUTA) has demanded that steps be taken quickly to allow Ghanaian traders to deal more in the Chinese Yuan while conducting business with China.
Because imports would no longer be made in US dollars, this change is likely to relieve pressure on the Cedi.
The majority of Ghana’s imports originate from China due to lower costs when compared to identical locally produced items.
“Even the central bank has recognized that [trading with China using the Yuan],” GUTA President Dr. Joseph Obeng remarked on Citi TV’s The Point of View.
“They’re joking about it.” Some banks have taken that step, so it’s a safe bet,” Dr. Obeng remarked.
He suggested that Ghana and China look into establishing a clearing mechanism akin to the Pan-African Payment and Settlement System.
“We can also conduct a similar clearing mechanism with China, where we transmit our local currency to local banks, and they clear with the local currencies.”
“I believe this is the way to go, and African central banks have begun to think in this way.” “I believe they need to move quickly on policies that will relieve the dollar’s pressure,” Dr. Obeng added.
The Cedi is now trading at GHS 6.88 per dollar.
This is an increase from the first quarter of 2021, when it was at GHS 5.58.