Access Bank Plc is moving to revolutionize cross-border trade by eliminating longstanding currency barriers between China and various African countries. The bank is pioneering a major shift in transaction models by encouraging direct currency exchange, bypassing the U.S. dollar in trade deals, a move that could significantly lower transaction costs for African businesses.
Speaking on the matter, the bank’s Executive Director, Iyabode Soji-Okunsanya, shows the urgency of this change in approach. She noted that it is both inefficient and financially draining for African businesses to first convert their local currencies into U.S. dollars before completing transactions in Chinese Renminbi or other African currencies.
“If I’m conducting business between Nigeria and China, there’s no need to first convert the Naira into U.S. dollars before converting again to Renminbi (RMB). Each of those conversions comes with fees, which hurts businesses by inflating costs,” Soji-Okunsanya said.
She emphasized that this outdated currency conversion model contributes heavily to trade imbalances and diminishes the profitability of international trade ventures. By adopting a more direct and currency-aligned approach, Access Bank intends to make international trade more affordable, seamless, and accessible for African entrepreneurs and enterprises.
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This initiative, according to Soji-Okunsanya, is not merely a financial innovation, it’s a blueprint for economic transformation. Access Bank’s strategy will empower local businesses by improving access to global markets and enabling smoother, more cost-effective trade operations. The bank also believes this model could set the tone for a new continental standard in trade financing and currency policy, particularly as Africa continues to strengthen intra-continental trade ties under the African Continental Free Trade Area (AfCFTA).
Access Bank’s move is expected to solidify its standing as a pan-African financial leader while aligning with broader economic goals aimed at reducing Africa’s dependency on Western financial systems. With trade costs minimized and red tape reduced, Nigerian businesses could soon experience a more profitable and globally integrated trade environment.
As the bank rolls out this strategy, it is calling on financial institutions and trade stakeholders across the continent to join in transforming the traditional trade ecosystem by embracing direct currency exchange solutions and fostering a more self-reliant Africa.
