The Bank of Ghana has served notice it will sanction exporters who fail to comply with its new directive on repatriation of export proceeds.
The caution follows amendments to the requirements for surrender and repatriation of export receipts by exporters in the country.
According to the Central Bank, exporters who fail to repatriate export proceeds in full as prescribed under the new regulation, shall be in violation of the rules and commits an offence under Section 15 (4) of the Foreign Exchange Act, 2006 and liable to conviction on sanctions as prescribed.
The amendment, which will take effect from July 1, 2016, permits 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.
The measure, Citi Business News understands is to deepen the foreign exchange markets and promote greater transparency in the determination of the exchange rate.
This comes after the central bank hinted to Citi Business News that it was going to allow a portion of foreign exchange receipts from the export of minerals and cocoa to be surrendered to the BoG.
In a statement copied to Citi Business News, the Bank of Ghana said “Effective July 1, 2016 all exporters, except exporters who operate in accordance with Retention Agreements and who have been permitted to operate accounts offshore, would be required to repatriate in full all their export receipts to banks in Ghana, for the credit of their foreign exchange accounts (FEA) to be converted into cedis on need basis.”
The statement further explained that “In preparation for the change, the Bank is introducing new export forms and procedures to govern exports from Ghana”.
The central bank therefore asked banks, exporters and the general public seeking further clarifications on the notice to contact the Banking Department of the Bank of Ghana.
Exporters association lauds move
Meanwhile the Association of Importers and Exporters has lauded the BoG’s policy allowing the repatriation of export receipts by exporters in the country.
According to them, the new policy will deepen the foreign exchange markets and also allow easy trading among their foreign counterparts.
Executive Secretary of the Importers and Exporters Association, Sampson Asaaki Awingobit also tells Citi Business News the implementation of the new policy comes as a great relief to exporters.
“This means that they are no more tying the hands of the exporters as was the case in the unwarranted forex rules introduced in 2014,
“This policy is much more appreciated as every exporter will be happy to have such a transaction with his or her own bank because depending on when you even expect to send the money… they are not compelling you that immediately the proceeds get to you send them to your bank but as and when you consider appropriate to do so,” Sampson Asaaki noted.
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By: Norvan Acquah-Hayford/Jessica Ayorkor Aryee/citibusinessnews.com/Ghana