IEAG Supports BOG’s Export Earnings Repatriation Directive
The Importers and Exporters Association of Ghana has expressed full support for the Bank of Ghana’s recent reminder on the mandatory repatriation of export earnings, warning that failure to comply could result in a prison sentence of up to ten years.
Speaking exclusively to the New Finder Newspaper, Executive Secretary of IEAG, Mr. Samson Awingobit, emphasized that the directive is grounded in the law. He noted that despite the stability of the Ghanaian cedi, some businesses have been reluctant to comply with the repatriation requirements.
“We are bound by law to repatriate our proceeds when we export. The law stipulates repatriation within three months, with the maximum period being 90 days. At the very least, we should be able to repatriate within that timeframe,” Mr. Awingobit stated.
He acknowledged that some exporters are deliberately avoiding repatriation due to dissatisfaction with currency stability. However, authorities have made it clear that evading repatriation contravenes the law and attracts severe penalties, including imprisonment for a minimum of ten years.
Mr. Awingobit noted the alert serves to remind those who believe the currency instability justifies withholding export proceeds that the repatriation rules are intended to protect ordinary Ghanaians and maintain economic stability. Government policies are designed for the broader benefit of the populace.
He further explained that currency stability also benefits manufacturers and exporters who purchase raw materials, creating a win-win situation despite some exchange rate losses during repatriation.
“This issue is not just a matter of law but one of patriotism. Supporting a strong, resilient national currency is vital. Refusing to repatriate denies your country,” he added.
He cited examples from other countries such as China and Lebanon, where businesses repatriate their export proceeds, urging Ghanaian exporters to follow suit despite any short-term losses.
He also praised the government for its role in managing the repatriation timeline, highlighting that the Bank of Ghana extended the repatriation period to 90 days, which was previously 30 days.
In conclusion, Mr. Awingobit emphasized the importance of understanding and adhering to local laws when conducting business in Ghana, reaffirming the Association’s support for the Bank of Ghana’s regulatory measures.
