GUTA Advocates For Improved Access To Chinese Yuan For Trading
President of the Ghana Union of Traders Association, Dr Joseph Obeng has advocated for impoved availability and access to the Chinese currency, Yuan.
According to him, easy access to the Chinese Yuan will improve trading activities for members who import their wares from China as well as reduce the pressure of the Cedi which tends to struggle against the US dollar.
The GUTA president also believes that the availability of the Chinese currency will add to the raft of fiscal measures set out by government to address the sustained depreciation of the Ghana cedi against major trading currencies.
“All that we’re trying to do is to ease the pressure on the dollar. We trade in other currencies; CFA, Euro, and Pound. Why can’t we trade in Yuan? It is the biggest destination where we source our goods. It could have been the best option so I don’t know what is pulling us back,” Dr Obeng is quoted by Citi Business News.
In an earlier interview with journalists last month, the GUTA president urged government to accelerate plans to ensure its members can trade in the Chinese Yuan when doing business with the country.
He 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 earlier indicated.
“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.