News Column

Ghana Review of Foreign Exchange Rules Take Effect

June 23, 2014

Masahudu Kunateh

THE revision of the Bank of Ghana's (BoG's) rules on foreign exchange operations, which the bank hopes would enhance transparency, are now effective.

To this end, the central bank said the 60-day mandatory repatriation of export proceeds had been reversed and aligned to the terms agreed between trading parties.

Likewise it stated that the five-day mandatory conversion of export receipts into Ghana cedi had been reversed.

As such, exporters can now retain up to 60 percent of their export receipts in their Foreign Exchange Accounts (FEAs), and convert 40 percent of the proceeds into Ghana cedis at market rates within 15 days.

In a notice issued to all the banks and general public and signed by the BoG Secretary, Caroline Otoo, the regulator said exporters of services such as hotels, educational institutions, insurance companies and others may receive payment in foreign currency from non-residents.

The bank indicated that the service providers may retain up to 60 percent of their receipts in their FEA and 40 percent should be converted at market rates within 15 days in accordance with the paragraph above, adding that the service providers should submit quarterly returns to the Treasury Department of the Bank of Ghana.

"With the 60 percent retention granted to exporters, the margin account will no longer be required for such exporters.

However, importers may continue to use the margin account (operated by the banks on their behalf) to build up foreign exchange to be used exclusively for the purpose for which it is opened," the BoG stated.

According to the central bank, cash withdrawals from the Foreign Currency Account (FCA) and FEA should be permitted up to a limit of $1 000 or its equivalent per transaction in foreign currency.

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Source: AllAfrica

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