Banks to start trading in Chinese yuan

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The Bank of Ghana is hopeful that the Ghana Cedi will rebound as soon as the local banks start trading in the Chinese currency, the yuan.

The central bank says this is possible because it anticipates more businesses in the country to trade with the Asian nation.

Currently, traders in Ghana heading to China need to take dollars with them that would later be converted to yuan, according to Bank of Ghana Governor Kofi Wampah.

"Many more people are traveling to China to do business and we think we should make life a bit easier for them," he said.

"It will also ease pressure on the Cedi as well as decrease the demand for dollars", he added.

The local currency has depreciated by 20 per cent against the dollar since the start of 2013 as companies demand the US currency to pay for imports into Ghana.

The central bank introduced new currency-trading regulations for banks to improve liquidity and boost transparency a fortnight ago.

It now believes that trading in the Yuan will help strengthen the Cedi.

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