The Bank of Ghana has put in place a system to ensure that exporters repatriate export proceeds back into the country.
The move is to ensure that Ghana get bulk of the export receipts to help shore up the value of the Ghana cedi.
Speaking at a recent Monetary Policy Committee (MPC) press conference, Governor Dr. Ernest Addison said all exporters are required to fill out a letter of commitment associated with their exports
“There is a system in place to ensure that exporters repatriate export receipts back into the country. All exporters are required to fill out a letter of commitment associated with their exports”.
“If export receipts are not repatriated, exporters are unable to undertake further exports, except for those with retention allowances. However, if exporters exceed their retention limits, the system locks them out from conducting additional exports”, he pointed out.
Therefore, Dr. Addison said, it is not feasible for exporters to export without repatriating the associated foreign exchange back into the country.
Governor cautions currency speculators
Meanwhile, the Governor is cautioning currency speculators to desist from unmercenary currency speculation else they will leave to regret.
According to him, the currency market will soon correct itself and the implications of the corrections on speculators would be well understood.
“We have accumulated over $2 billion in foreign exchange reserves, surpassing even the three-year target ahead of schedule. This significant reserve build-up should be noted, alongside the fact that we have the capacity to manage the foreign exchange market effectively”, he responded to a question at the recent Monetary Policy Committee (MPC) presser.
“Given our progress, I urge those engaging in unnecessary currency speculation to reconsider, as there will be [market] correction and the implications of such corrections on speculators are well understood”, he mentioned.
Source: Daily Analyst
