CIPS: A Tool to Bypass the Dollar in Trade with China

GCB Bank PLC, one of Ghana’s leading financial institutions, is preparing to join the China Cross-Border Interbank Payment System (CIPS), China’s network for cross-border payments in renminbi (yuan). This initiative, announced following the successful integration of Stanbic Bank Ghana in August 2026, aims to streamline direct settlements between Ghanaian and Chinese businesses, eliminating the need for intermediary banks or systematic dollar conversions.

According to the Agence Ecofin, CIPS allows economic players to avoid high fees related to currency exchanges and international banking commissions. For Ghanaian exporters, this option could also reduce liquidity constraints in foreign currencies, a recurring challenge highlighted by the Bank of Ghana.

Export revenues are not just transaction records but a strategic national asset that stabilizes the cedi, funds imports, and strengthens the economy.

A Thriving Commercial Context Between Ghana and China

Bilateral trade between Ghana and China reached a record 14.1 billion dollars in 2025, up 19.3 percent year-on-year, according to the Chinese Ambassador to Ghana, Cong Song, as cited by the Agence Ecofin. This commercial momentum justifies Ghanaian banks’ interest in smoother payment solutions, such as CIPS.

The main products exported from Ghana to China, namely gold, crude oil, and cocoa, account for more than 80 percent of total revenue, as the Bank of Ghana reminds us in its new guidelines on Letter of Commitment (LOC). These revenues, estimated at around 31.2 billion dollars in 2025, are seen as a strategic asset to stabilize the local currency (the cedi) and fund imports.

What this means here: opportunities for businesses and administrations in West Africa

For businesses in Benin and West Africa, GCB Bank’s adherence to the CIPS could inspire similar strategies to diversify payment channels in trade with China. Like Ghana, countries in the sub-region could benefit from reduced transaction costs and improved financial flow traceability, particularly for sectors reliant on Chinese imports (infrastructure, technology, raw materials).

Local administrations, such as the Central Bank of Benin or chambers of commerce, could also leverage this model to negotiate bilateral agreements facilitating payments in yuan. This would reduce dependence on the dollar and mitigate risks tied to exchange rate fluctuations, a major concern for regional economies.

Finally, Ghana’s example demonstrates that adopting such systems requires a clear regulatory framework, as shown by the Bank of Ghana with its new LOC guidelines. Neighboring countries could draw inspiration to strengthen compliance while streamlining trade, particularly through partnerships with local banks and Chinese institutions.

A project in line with Ghana’s local reforms

The Bank of Ghana has recently revised its guidelines on Letter of Commitment (LOC), extending the repatriation period for export revenues from 60 to 120 days to improve exporters’ liquidity. This measure aligns with the goal of creating a « transparent, predictable, and efficient » environment for economic actors, as highlighted by Mrs. Matilda Asante-Asiedu, a senior official at the Bank of Ghana.

GCB Bank’s integration into the CIPS fits within this modernization logic. It could, in the long term, encourage other Ghanaian financial institutions to adopt similar solutions, thereby strengthening the country’s competitiveness in its trade with China. For other African nations, this could serve as a benchmark for negotiating alternative payment agreements, especially in a context where geopolitical tensions affect traditional systems (such as SWIFT).