Mr. Eric Kweku Hammond, Deputy Director of Foreign Banking Operations, Bank of Ghana, advised exporters to adopt the use of the Bank of Ghana Letter of Commitment (LOC) document to facilitate their export business. export.
“The LOC remained because it is a standardized document, and all exporters are expected to use it when exporting their goods from Ghana.
“No exporter would be able to export without the use of LOC and therefore every exporter must adopt it,” he said.
Mr. Hammond gave the advice during an interview with the Ghana News Agency on the sidelines of a seminar for importers, exporters, bankers and other actors in international trade in the Upper West region, on the Letter of Commitment (LOC) document.
The seminar was expected to help address the challenges posed by the implementation of the LOC for the repatriation of export earnings to companies.
He said that following the introduction of the LOC for the repatriation of export proceeds in 2016, the Central Bank received officers on the challenges its implementation was facing for their export businesses, d hence the need to hold the seminar to help educate them on the usefulness of its use. .
He explained that before an exporter exports, certain documents need to be processed before the goods are allowed to leave the shores of Ghana and the LOC is one of them.
The LOC, he said, would help the BOG monitor all exports leaving Ghana’s shores and enable the bank to repatriate export proceeds to the country.
He said the Bank of Ghana needed foreign exchange from these commodity exports to help build its reserves and pay for imports as well as to develop the country’s infrastructural base.
Mr Hammond said statistics had proven that around 90% of the products consumed in the country were imported.
“We pay them with the proceeds of export trade. If we do nothing for the repatriation of foreign exchange earnings, we will not be able to build up our reserves to support our local economies and obtain the necessary foreign exchange to embark.” on our socio-economic development through the country’s infrastructure,” he said.
Mr. Hammond said the Bank of Ghana was aiming for the repatriation of export earnings to enable it to achieve its micro-economy as a central bank.
It is for this reason that the Bank of Ghana was working with the Ghana Shippers Authority to educate importers and exporters on the LOC to enable them to use the document effectively and facilitate export business for all.