Ghana implements direct cedi-renminbi settlement for China trade

The Bank of Ghana is implementing measures to facilitate direct currency settlement between the Ghana cedi and the Chinese renminbi. This initiative aims to eliminate the need for third-party currencies, such as the U.S. dollar, in transactions between Ghanaian traders and Chinese suppliers. By reducing double-conversion commissions and intermediary steps, the move seeks to enhance bilateral trade and leverage China’s zero-tariff policies for African nations.

Stanbic Bank has already launched a pilot program using China’s Cross-Border Interbank Payment System (CIPS), allowing importers to fund renminbi payments directly from cedi accounts. GCB Bank is also developing a similar mechanism.

Separately, Ghana’s gross international reserves have risen to $12 billion, providing approximately 4.5 months of import cover. This increase is largely attributed to a resumption of significant gold shipments. However, the Institute of Economic Research and Public Policy (IERPP) has cautioned against over-reliance on high gold prices, warning that current stability may mask underlying structural fragilities.

In India, foreign exchange reserves declined by approximately $14.88 billion to $765.90 billion for the week ending September 18, primarily due to a drop in foreign currency assets.