Ms Benonita Bismarck, the Chief Executive Officer of the Ghana Shippers' Authority (GSA), has commended the Bank of Ghana (BoG) for streamlining bottlenecks in exports and imports to shore up revenue for accelerated development.
The measures, among others, include the need for repatriation of proceeds through the establishment of Letters of Commitment (LoC) to ease the challenges of export proceeds repatriation.
Addressing a forum for exporters and importers in Cape Coast, Ms Bismarck said LoCs are aimed at achieving repatriation of export proceeds to enable the BoG to realize boost its foreign exchange reserves.
The discussions largely centered on LoC requirements for the repatriation of export proceeds for importers, exporters, industry stakeholders, and other developments in the dynamic shipping environment.
Also, exports to major trading countries are the backbone of the government's revenues, therefore, the move will: be "Currency stability, job creation, and industrialization drive.
"That will enhance the country's foreign exchange reserves, support effort at building resilience in the economy, and stabilize the national currency and the overall macroeconomic stability.
She underscored the significance of LoC requirements to ensure all revenues were fully repatriated into the country through the banking system to ensure that exports and associated earnings were effectively tracked and their repatriation was guaranteed.
Ms Bismarck also mentioned some challenges with the implementation of the LoC, including inadequate time allocated for the repatriation of export proceeds and blocking of subsequent export transactions for non-repatriation of proceeds beyond 60 days.
“The others are delays in accessing repatriated proceeds from commercial banks, low exchange rates offered by the banks, high commissions charged by commercial banks, and the unsuitability of the current form of the LOC for small-scale cross border trade.”
She noted that most of the problems faced by exporters stemmed from non-compliance and inadequate knowledge of the procedures involved, hence the collaboration between the two organizations to remove these bottlenecks.
Alhaji Musa Ali former Chairman of the Central Regional Imports and Exports Association commended GSA for allowing stakeholders to interact and stressed the need for compliance.
He, among others, the stakeholders brought to the fore concerns such as inadequate time allocated for the repatriation of export proceeds and blocking of subsequent export transactions for non-repatriation of proceeds beyond three months.
Source: GNA
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