The Ghana Union of Traders (GUTA) has called for the fast-tracking of moves to ensure that traders in the country are able to trade more in the Chinese Yuan when doing business with China.
Such a move is expected to reduce pressure on the Cedi because imports will not be done with US dollars, according to him.
Most of Ghana’s imports currently come from China because of cheaper cost when compared to similar local goods.
Speaking on ‘The Point of View’ on Accra-based Citi TV, GUTA’s president, Dr. Joseph Obeng, referred to moves by the Bank of Ghana to accept trading with China using the Yuan.
“They are talking around that. Some banks have that initiative across, so it is the sure way to go,” Dr. Obeng added.
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He further suggested that Ghana could explore 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,” Dr. Obeng said.
“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,” he added.