Ghana has introduced a new payment arrangement that allows importers to use Ghanaian cedis to settle eligible import transactions from China, reducing their reliance on the US dollar.

Stanbic Bank Ghana is currently piloting the cedi-to-yuan payment system, while Ghana Commercial Bank is also developing a similar service.

Under the arrangement, payments can be made from cedi accounts and converted directly into Chinese yuan for settlement through China’s Cross-Border Interbank Payment System (CIPS).

The system is expected to reduce the need for US dollar-based correspondent banking arrangements for China-related transactions, potentially lowering transaction costs and shortening processing times.

The initiative is also expected to facilitate trade between Ghana and China by providing importers with an alternative mechanism for settling payments and reducing their exposure to fluctuations and liquidity constraints associated with the US dollar.

The development forms part of broader efforts to promote more efficient cross-border payment systems and deepen financial and trade links between Ghana and China.