ACCRA / BEIJING — Ghana has introduced a direct currency settlement mechanism that allows local importers to pay for Chinese goods using the Ghanaian cedi (GHS). The move is designed to reduce the country’s dependence on the US dollar for foreign trade, lower transaction fees, and shorten payment processing times for businesses trading with China.
Direct Currency Settlement via CIPS
Bank of Ghana Governor Dr. Johnson Pandit Asiama announced the initiative during the 132nd Monetary Policy Committee (MPC) press briefing. Dr. Asiama confirmed that Stanbic Bank Ghana is actively piloting the payment setup, enabling importers to fund yuan-denominated invoices directly from their local cedi accounts without first having to purchase US dollars. Ghana Commercial Bank (GCB) is currently building out a similar payment service.
The clearance process utilizes China’s Cross-Border Interbank Payment System (CIPS), a network authorized by the People’s Bank of China for settling international yuan transactions. Key operational details include:
- No Local Yuan Account Required: Importers can submit documentation and execute yuan transactions directly from existing cedi accounts.
- Next-Business-Day Settlement: Transactions submitted by 2:00 p.m. GMT are eligible for processing and settlement on the following business day, pending standard regulatory checks.
- Bypassing Intermediary Banks: The CIPS connection creates a direct payment channel to Chinese trade partners, eliminating the need for US correspondent or intermediary banks.
Stanbic Bank Ghana CEO Kwamina Asomaning highlighted that bypassing third-party clearing banks reduces foreign exchange conversion costs and avoids multi-stage settlement delays. Central bank officials clarified that CIPS does not replace SWIFT, which will continue to handle transactions in US dollars, euros, and British pounds.
Expanding Trade Corridor and Zero-Tariff Framework
This monetary adjustment comes amidst growing commercial ties between West Africa’s leading gold producer and Beijing. In 2024, China accounted for 22.3% of Ghana’s total imports.
The currency arrangement complements broader trade policies established between China and the African continent. Effective May 1, 2026, Beijing expanded its zero-tariff policy to cover all 53 African countries with which it maintains diplomatic relations. The Bank of Ghana noted that it will continue working with relevant institutions to maximize the economic advantages created by China’s tariff-free market access.
Reported by ABT NEWS (www.abtnews.net)
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