BOG must monitor repatriation of export receipts – AGI

The Association of Ghana Industries (AGI) has called on the Bank of Ghana (BOG) to ensure full adherence to its new directive on surrender and repatriation of export receipts by the business community in Ghana.

The AGI also argues the move will allow demand and supply to determine the performance of the cedi against the dollar on the market.

Welcoming the development the President of the AGI James Asare Adjei told Citi Business News it will increase the confidence of the business community in the economy.

“AGI is very interested in all efforts to facilitate business operations, such as availability of foreign currency for companies especially those who are into the imports of raw materials to be able to get the needed to import equipments and materials for their work,” he said.

He stated that the move will restore confidence to many exporters and encourage them to hold their foreign exchange earnings since they directly have access to it locally.

“But what we need is that the regulator, that is the central bank will have to have the right measure in place to ensure the directives are adhered to by all stakeholders,” he cautioned.

He was of the view that the exporters and importers will cease the habit of hiding their foreign currency.

The BoG will from 1^st of July commence the implementation of a new directive which will compel all exporters, except those with Retention Agreements to repatriate in full all their export receipts to their foreign exchange accounts (FEA) with local banks in Ghana to be converted into cedis on need basis.

BOG to monitor export documentation

The Bank of Ghana (BoG) has maintained that the latest surrender and repatriation of export receipts will spur the country’s socio-economic transformation agenda.

The move, it explained is targeted at building an automation platform for export documentation to end the silos monitoring by various government agencies.

In addition, it will allow the BoG to monitor and properly document all exports of goods and services to make sure proceeds are repatriated to Ghana.

Speaking at a stakeholders forum on the implementation of the monitoring software by GCNET, the First Deputy Governor of the BoG,  Millison Narh explained that  the move will help accumulate adequate reserves to support the economic development of the country.

Meanwhile offenders may be deemed to have committed an offence under Section 15 (4) of the Foreign Exchange Act, 2006 and liable on conviction to sanctions as prescribed by a court.

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By: Norvan Acquah – Hayford/citibusinessnews.com/Ghana