The Importers and Exporters Association of Ghana (IEAG) has commended the Bank of Ghana for introducing a new banking mechanism that allows local businesses to make payments directly from their local cedi accounts.
The initiative—aimed at reducing the country’s reliance on the US dollar—was described by the IEAG as a brilliant move.
Philip Azu, Communications Director of the IEAG, indicated that the mechanism will allow businesses to settle invoices in Chinese yuan via China’s Cross-Border Interbank Payment System (CIPS), bypassing the traditional double-conversion route through the US dollar.
Trade activity between Ghana and China is substantial, with China currently standing as Ghana’s largest source of imports. Stanbic Bank Ghana is currently piloting the settlement system, with Ghana Commercial Bank (GCB) expected to introduce a similar service soon.
Speaking in an interview on Frontline on Rainbow Radio 87.5FM, Mr. Azu noted that the move will also eliminate existing bottlenecks and ease the struggle for foreign currency, which often forces traders to purchase dollars on the black market at exorbitant rates.
”This is good news for us. This is so because trading between Ghana and China is huge. Statistics show that Ghana is among the largest importers of Chinese goods. Over 20 percent of our imports are from China. It is our largest source of imports, and that demonstrates how much this initiative will help businesses.”
”This new policy will deal with the bottlenecks and the struggle for the dollar. We don’t get the dollar in the banks, and the only available option is the black market, where it is sold at exorbitant prices—above GH₵13 even when it is supposed to be sold at GH₵11. So this will provide relief to us, especially to importers.”
By: Rainbowradioonline.com/Ghana