Make the Chinese yuan access for trading – GUTA to government
In ensuring a smooth trade between Ghanaians and their Chinese counterparts, the Ghana Union of Traders Associations (GUTA ) has urged the government to speed up measures that will help Ghanaian traders to do business more with the Chinese Yuan.
The association is of the view that if such a decision is implemented pressure on the cedi will reduce because payment for imports will not be done in dollars.
It is not surprising to note that most Ghanaian imports come from China due to their affordable nature as compared to similar local goods.
GUTA’s President, Dr Joseph Obeng, said, “even the central bank has accepted that [trade with China using the Yuan].”
He added that “They are talking around that. Some banks have that initiative across, so it is the sure way to go”.
He further suggested that Ghana could explore the option of 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.
The latest exchange rates have the Cedi is trading at GHS 6.88 to the dollar. This is up from about GHS 5.58 in the first quarter of 2021.
