GUTA urges government to accelerate moves for trading in Chinese Yuan

GUTA laments persistent cedi depreciation against US Dollar

GUTA members import more goods from China

Cedi struggling against major trading currencies since the start of 2022

President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng has urged government to accelerate plans to ensure its members can trade in the Chinese currency; the Yuan, when doing business with the country.

According to him, the move is necessary to help curtail the ongoing depreciation of the Ghana cedi against the US dollar and reduce pressure on the currency during imports.

In an interaction on Citi TV’s Point of Segment, the GUTA president explained, “even the Bank of Ghana has accepted a move to trade with China using the Yuan. They are talking around that and some banks have that initiative across, so it is the sure way to go.”

Dr Joseph Obeng further implored the government to explore a clearing system with the Asian nation – one that is similar to the newly introduced Pan-African Payment and Settlement System under the African Continental Free Trade Agreement.

“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,” he is quoted by Citi Business News.

“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,” the GUTA president added.

Meanwhile, due to the cheaper cost of goods imported from China, Ghanaian traders often purchase their goods from the Asian nation as compared to locally produced ones.