On Monday, October 5, 2026, the Bank of Ghana announced a way for Ghanaian businesses to buy goods from China. They can do so without using the U.S. dollar. Stanbic Bank Ghana will start this new method, and GCB will also soon follow, they announced. What does this mean, and how does it concern me?
How do international payments work?
When paying for something outside your country, one of the most widely used currencies is the dollar. That said, when you buy something outside your country, you sometimes have to convert your local currency into dollars to pay for the item. Our banks usually do help in this area whenever you make a payment outside your country. Think about that item you bought on Temu, Shein, or Amazon. When you make a payment, your bank converts your cedis into dollars and pays the vendor. This conversion sometimes takes time and comes with charges.
What was the old system?
What if the vendor lives in another country? Say China? China uses yuan instead of Cedis or Dollars. Well, when you make a payment to a Chinese merchant, your money can first be converted to dollars and then converted to yuan. This process involves several banks and also comes with charges. However, this time, you are paying more charges. The charges may seem small if you are buying something for yourself, but imagine you are a business that ships a lot of things. The charges then become a big deal.
What is the new system?
With the new system Stanbic Bank Ghana has introduced, your Ghana cedis can now be directly converted into Yuan to pay your supplier or vendor. First, it had to be converted to dollars, where they would charge you, and then converted to yuan, where they would charge you again. Now, they skip converting it to dollars first and rather convert it straight to yuan. In simple terms, you can start with cedis, and your supplier receives yuan.
What does this mean for you?
For importers, this could make paying Chinese suppliers simpler and potentially reduce some transaction costs and delays. Unfortunately, this does not automatically mean imported goods will become cheaper. The final cost still depends on exchange rates, bank charges, supplier prices, shipping costs, and other expenses.
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Featured Photo by Wolfgang Weiser
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