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Business News of Monday, 10 September 2018

Source: citibusinessnews.com

Businesses push for direct Yuan conversion in Ghana

The introduction of the Chinese Yuan as a major trading currency in Ghana will bring flexibility and ease of doing business.

This is the take by business associations in Ghana.

By this, they have reiterated calls for government and the Bank of Ghana to make the Chinese Yuan accessible in Ghana.

They also contend that this will ease the pressure on the dollar which will automatically stabilize the cedi.

The businesses believe it is the cause of the constant appreciation of the dollar against the cedi.

In an interview with Citi Business News, Executive Member of the Ghana Union of Traders Association (GUTA) Benjamin Yeboah said the introduction of the Chinese Yuan will be of great benefit to businesses in Ghana.

“We are always using the dollar as the rate in accessing the strength of the cedi. Therefore most at times, people have to change to that medium, the dollar in trying to bring goods down to Ghana. Majority of our members or traders usually ply their trade from China and therefore using the Yuan as a medium is a great idea so that should one attain the Yuan here, in terms of trying to bring in goods, it builds that much pressure on the Dollar where we are all choosing to secure and bring goods in from China. It will help a lot, bring pressure lower to bear on the dollar and who know, it can even help the strength of the cedi. So it is a good idea, and I think it should be explored” he explained.

The cedi has depreciated over the last two weeks.

As at Friday [September 7, 2018] the cedi traded at 4 cedis, 75 pesewas against the dollar on the interbank foreign exchange market.

The figure is however high with forex bureaus.

The drop is affecting importers who have to issue more cedis for the dollar and other major trading currencies.

The business associations insist buying the Yuan from Ghana and vice versa will reduce the demand on the dollar whilst enhancing trade ties between Ghana and China.

Currently, the volume of trade from China is among the highest with Ghana’s international partners.

Chairman of the Abossey Okai spare parts dealers association, Clement Boateng is also of the view that introducing the Yuan will be a welcoming news should government and the Central Bank agree to make Yuan a major trading currency in Ghana.