BoG moves to promote transparency in foreign exchange markets

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The Bank of Ghana(BoG) has announced amendments to the requirements for surrender and repatriation of export receipts by exporters in the country.

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.

Meanwhile, the BoG has warned that any exporter who fails 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 is liable on conviction to sanctions as prescribed

 

Source: citifmonline.com

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