BoG charges exporters to repatriate all export proceeds

The Bank of Ghana (BoG) has urged exporters to repatriate all export proceeds through the formal banking system, warning that failure to return foreign earnings weakens the country’s foreign exchange reserves and undermines efforts to stabilise the cedi and control inflation.

Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, said unreturned export earnings limit Ghana’s ability to finance imports, maintain adequate foreign exchange buffers and withstand external economic shocks.

She made the remarks at a stakeholder engagement on the revised Letters of Commitment (LOC) guidelines, where she emphasised the importance of ensuring that foreign exchange generated from exports returns to the domestic economy.

“Every dollar of exports that fails to come to Ghana has many implications,” she said.

Mrs Asante-Asiedu explained that the repatriation of export proceeds was essential to strengthening the country’s foreign exchange position and supporting broader macroeconomic stability.

The BoG Second Deputy Governor cited rising global oil prices and geopolitical tensions as factors putting additional pressure on Ghana’s foreign exchange requirements.

She noted that the country’s oil import bill had increased by nearly 40%, highlighting the importance of maintaining sufficient foreign exchange reserves to meet essential import needs.

According to her, Ghana’s foreign exchange buffers have helped the country finance imports while limiting the impact of external pressures on domestic prices.

She also stressed that exchange rate stability was important for businesses, particularly shipping operators, whose operational costs are largely denominated in foreign currencies.

The BoG’s warning reinforces the importance of ensuring that foreign exchange earned through exports is channelled into the domestic financial system to support the country’s external payments and currency stability.

Meanwhile, Chief Executive Officer of the Ghana Shippers’ Authority, Prof. Ransford Gyampo, has cautioned exporters against allowing their businesses or shipping processes to be used for transporting illicit drugs.

He warned that involvement in drug trafficking could damage Ghana’s international reputation and expose legitimate exporters and shipping businesses to increased scrutiny, delays and other operational challenges.

“They shouldn’t allow themselves for a few greedy and selfish people to use their processes to transport or to use them to transport some of these illicit drugs,” he said.

Prof. Gyampo also urged exporters to comply with the revised Letters of Commitment requirements, particularly the obligation to repatriate export proceeds through commercial banks.

His comments highlight the need for exporters to maintain proper controls over their operations and ensure that legitimate trade channels are not exploited for illicit activities.

Head of Revenue Assurance at the Ministry of Finance, Victor Kofi Baidoo, warned that exporters who fail to repatriate their proceeds could have their transactions treated as domestic sales, making them liable for applicable duties, taxes and other sanctions.

“This means that any export declaration without a repatriation would not be considered an export and would be seen as domestic sales,” he said.

Mr Baidoo explained that amendments to the Customs Act have made the repatriation of export proceeds a key requirement for completing export declarations.

The measure forms part of broader government efforts to curb revenue losses, strengthen compliance and ensure that foreign exchange generated from exports is properly accounted for.

The revised LOC guidelines are intended to reinforce accountability among exporters and improve the monitoring of export transactions.

The combined warnings from the Bank of Ghana, the Ghana Shippers’ Authority and the Ministry of Finance underscore the importance of export proceeds repatriation for foreign exchange management, revenue mobilisation and the integrity of Ghana’s international trade system.