Ghanaian businesses importing goods from China can now make payments to Chinese suppliers in Ghana cedis, without converting their money into US dollars, under a payment service being piloted by Stanbic Bank. This service allows customers to pay in Ghana cedis while the payment is made to the supplier in Chinese yuan. The initiative aims to support trade between Ghana and China and provide businesses with an alternative to dollar-based payments.
The service, which uses Stanbic Bank's Cross-Border Interbank Payment System (CIPS), is designed for businesses that need to make direct Chinese yuan payments from Ghana. This means a business importing goods from China can pay its supplier directly in yuan, without having to go through multiple foreign exchange conversions. The service can also be used by businesses making regular payments to Chinese partners and vendors.
According to Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG), the initiative is part of efforts to support trade between Ghana and China. He disclosed the development at the 132nd Monetary Policy Committee press briefing, stating that the service allows Ghanaian importers to pay Chinese suppliers using Ghana cedis through Stanbic Bank's pilot service.
The process is designed to allow a Ghanaian importer to start the transaction in Ghana cedis. Instead of obtaining US dollars and using them to pay a supplier in China, the customer goes to Stanbic Bank with the cedis needed for the transaction. The payment is then made to the Chinese supplier in Chinese yuan.
The service is not limited to businesses; individuals can also use it to make payments in China. They can pay for goods and services, make healthcare and medical payments, pay school fees and other education-related expenses, and send money to family members in China. This development comes as Ghana's trade relationship with China continues to expand.
The Bank of Ghana says Stanbic Bank is not the only bank working on such a payment arrangement. Dr. Asiama stated that Ghana Commercial Bank (GCB) is also preparing a similar service. The Bank of Ghana is monitoring the development as banks introduce more payment options to support Ghana-China trade.
For importers, the main change is that payments for goods bought from China can be initiated in Ghana cedis and settled in Chinese yuan, reducing the need to source US dollars specifically for those transactions. The service allows customers to manage China-related transactions faster and more efficiently, reducing the need for multiple foreign exchange conversions.
Key points
- Stanbic Bank pilots service allowing Ghanaian businesses to pay Chinese suppliers in cedis.
- The service reduces the need for US dollars in Ghana-China trade.
- GCB is also preparing a similar service to support Ghana-China trade.
