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Business News of Sunday, 11 September 2011

Source: GNA

Banker cautions Ghana not rush decision to invest foreign reserves in

Chinese Yuan

Accra, Sept. 11, GNA - Ghana must not rush with the decision to invest part of its foreign reserves in the Chinese Yuan as it is premature to heed such calls, Alhassan Andani, Managing Director of Stanbic Bank Ghana has said.

He said 93It is too early and premature for Ghana to consider such calls to put some of its reserves in the Yuan," adding that the country must first weigh the economic implications of any such move.

Nigeria's Central Bank last week announced that it would invest between five and 10 percent of reserves in the Chinese Yuan, adding to the reserve currency mix of Dollars, Euros and Pounds Sterling.

Consequently, suggestions had been made by some analysts that Ghana should follow the example of Nigeria on the hope that the Yuan could soon become an international currency following the continuous weakening of the Dollar.

However, speaking to journalists on the sidelines of Stanbic banks customer appreciation night,

Mr. Andani said Ghana must continue to rely on the Dollar and gold until a firm position on the implications for the county was understood, adding that Nigeria with large foreign reserves could afford to diversify its reserves.

Currently, Nigeria's foreign reserves stand at 32.3 billion Dollars compared to Ghana's 4.5 billion Dollars.

Mr Andani said 93The trade in the Yuan has been doing well and helping traders to meet their currency demands through our correspondence bank in China".

On the customer appreciation, Mr Andani said it was a gesture to strengthen the relationship between it and the customers.

He said the event enabled customers to mention new products and services they wanted from the bank.

"It is our small way of telling them we appreciate the fruitful partnership over the years and to chart new paths in our relationship," Mr Adani said.

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