Ghana is moving to reduce the role of the US dollar in its growing trade with China, with a new cedi-to-yuan payment arrangement that could make cross-border transactions faster, cheaper, and less dependent on international correspondent banks.
The initiative, being piloted through Ghanaian commercial banks with support from the Bank of Ghana, allows businesses to initiate eligible payments from their Ghana cedi accounts while Chinese suppliers receive payment in yuan. The arrangement is linked to China’s Cross-Border Interbank Payment System (CIPS), providing a more direct channel for Ghana-China transactions.
Bank of Ghana Governor Dr Johnson Pandit Asiama said Stanbic Bank Ghana was already piloting the system, while Ghana Commercial Bank was preparing a similar service. The governor said Ghanaian importers could use cedis to pay for goods from China without first having to obtain US dollars.
The development is significant because China is one of Ghana’s largest trading partners and Chinese products account for a substantial share of Ghana’s imports. China’s customs data shows Ghana-China trade reached about $11.84 billion in 2024, with Ghana importing nearly $9.84 billion of goods from China.
Under the new payment structure, a Ghanaian importer does not necessarily need to convert cedis into dollars before making a payment to a Chinese supplier. Instead, the banking system facilitates conversion into yuan and settlement through the Chinese payment network.
Stanbic Bank Ghana says its CIPS service provides a more direct route for yuan payments, reducing the need for US correspondent or intermediary banks. Eligible payments submitted before the bank’s daily cut-off can be processed quickly and settled through the CIPS network.
A wider China-Africa payment shift
Ghana’s move is part of a broader expansion of yuan-based financial infrastructure between China and Africa.
In June this year , China authorised Standard Bank and the Industrial and Commercial Bank of China to operate as Renminbi clearing banks across Africa. The arrangement is expected to provide financial institutions in 19 African countries with greater access to China’s onshore financial infrastructure and facilitate trade and investment in yuan.
South Africa’s Standard Bank has also become a major gateway between African businesses and China’s financial system after connecting to CIPS. Angola is preparing to follow, with Banco de Fomento Angola planning to join CIPS as demand for yuan-denominated transactions increases. Angola has also approved the yuan as a reserve currency alongside the dollar, euro, and South African rand.
Pan-African lender Ecobank is separately in discussions with Bank of China over a direct yuan and local-currency settlement solution, highlighting the growing demand from African companies that trade with Chinese suppliers.
The expansion comes as China-Africa trade continues to grow. China reported that trade with Africa increased strongly in 2025, while Beijing has also eliminated tariffs on imports from 53 African countries, creating additional incentives for African exporters to deepen commercial links with China.
Why African economies want alternatives to the dollar
Africa’s move toward yuan and local-currency settlement does not mean countries are abandoning the US dollar. The dollar remains the dominant currency for global trade, commodities, international reserves, and cross-border finance.
However, African governments and businesses are increasingly seeking alternatives because dependence on the dollar creates significant foreign-exchange pressures.
Importers must often obtain dollars before paying suppliers, even when neither the buyer nor seller is American. This creates an additional currency conversion, exposes businesses to exchange-rate movements, and can increase transaction costs through correspondent banks.
For countries experiencing shortages of hard currency, the problem can be even more severe. Recent market data shows strong dollar demand continues to put pressure on several African currencies, including Ghana’s cedi.
Local currency and yuan settlement can therefore reduce the number of currency conversions required for trade with China while giving African banks a more direct connection to Chinese financial infrastructure.
There is also a geopolitical dimension. African economies increasingly want greater flexibility in international payments and less exposure to disruptions in dollar-based financial channels. The expansion of alternative payment systems is therefore becoming part of a wider effort to diversify Africa’s financial relationships rather than relying overwhelmingly on a single global currency.
For China, the trend supports the internationalization of the yuan. The People’s Bank of China has said expanding the international use of the currency in trade and investment is a priority for the country’s financial strategy.
For Africa, meanwhile, the emerging payment architecture could lower transaction barriers, improve access to Chinese markets, and make it easier for small and medium-sized businesses to participate in China-Africa trade.
Ghana’s cedi-to-yuan arrangement therefore represents more than a banking innovation. It is part of a broader transformation in how Africa conducts international commerce—one in which local currencies, the yuan, and regional payment systems increasingly complement the traditional dominance of the US dollar.
