The Bank of Ghana (BoG) has announced new guidelines on the application of exchange rates by players in the shipping industry.
The guidelines, which come into effect on July 22, 2025, aim to streamline foreign exchange pricing practices for services rendered at Ghana’s ports. This decision follows a series of consultations with stakeholders within the shipping industry, ensuring that the new policies reflect the needs of both businesses and consumers.
Key Aspects of the Guidelines
The newly introduced guidelines are set to ensure that foreign exchange transactions within the shipping sector are standardized, and their application is transparent and accessible to all parties involved. The guidelines affect all players within the industry, including shipping companies, clearing agents, and other service providers operating at Ghana’s ports.
One of the most notable changes is the requirement for all industry players to publicly display the exchange rates they use for invoicing. According to the statement issued by the BoG and signed by its secretary, Sandra Thompson, the exchange rates must be available on the companies’ websites or displayed at their premises. This is intended to make the rates visible to customers, providing clarity on pricing before any financial transactions take place.
The new guidelines also specify that the exchange rates should reflect the market rates as determined by commercial banks and should be benchmarked against the BoG’s published interbank exchange rate. This is a significant step in ensuring that exchange rates are not arbitrarily determined but are instead based on official market conditions.
Invoicing Transparency
The guidelines stipulate that when issuing invoices, service providers must clearly outline the following details:
- The currency in which the service is being billed.
- The exchange rate applied.
- The date on which the exchange rate was applied.
- The final amount payable, clearly stated in either Ghanaian cedis (GHS) or U.S. dollars (USD).
These steps aim to eliminate confusion regarding pricing and reduce the risk of disputes between customers and service providers. By requiring full transparency in invoicing, customers will have a clearer understanding of the exchange rate applied and the corresponding charges for services rendered.
Dispute Resolution Process
In the event of a dispute concerning the exchange rates applied, the BoG has outlined a clear process for resolution. Initially, customers are encouraged to raise complaints directly with the service provider involved. If the dispute is not resolved at this stage, customers have the right to escalate the issue to the Ghana Shippers Authority (GSA) for further investigation and resolution.
This two-tiered dispute resolution process is designed to ensure that customer grievances are addressed promptly while also ensuring that service providers comply with the established guidelines. The BoG’s involvement in this process guarantees that the foreign exchange practices in the shipping industry remain in line with national regulations.
Compliance with the Foreign Exchange Act
The Bank of Ghana has also reminded all industry players of their responsibility to adhere to the Foreign Exchange Act, 2006 (Act 723). The Act regulates the use of foreign currency within Ghana and mandates that all foreign exchange transactions be conducted within the framework set out by the BoG.
The introduction of these guidelines is a step towards strengthening the regulatory oversight of the foreign exchange market in Ghana, particularly within the shipping sector. The BoG is committed to ensuring that the market remains fair, transparent, and conducive to economic growth.
Potential Impact on the Shipping Industry
The new guidelines are expected to have a significant impact on the shipping industry in Ghana. One of the key outcomes anticipated is the reduction of discrepancies in exchange rate applications. Previously, customers may have faced inconsistencies or unexpected charges due to lack of transparency, which can now be mitigated by these new guidelines.
Furthermore, the clear publication of exchange rates will likely improve consumer trust and confidence in the sector. Businesses in the shipping industry will also benefit from the clarity and uniformity in pricing, which could lead to smoother operations and reduced administrative costs related to dispute handling.
By aligning the shipping industry’s exchange rate practices with the Bank of Ghana’s published interbank rates, the guidelines aim to stabilize the market and provide more predictability for both service providers and consumers. The adherence to these standardized practices also ensures that Ghana remains in line with international best practices in foreign exchange management, enhancing its competitiveness in global shipping markets.
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