Guyana: No foreign exchange shortage, but Caricom buyers are taking out US dollars
Guyana on Tuesday rubbished claims that there is a massive foreign exchange shortage, but he said that buyers from sister CARICOM countries having been taking out United States (US) dollars from this country.
“The issue as it relates to the Trinidad and Barbados currencies flooding our market will be looked at and action will be taken to ensure that this occurs in a normal way rather than it being here just to buy up foreign currency,” Finance Minister, Winston Jordan was quoted as saying in a government statement issued late Tuesday.
“There is no shortage,” he said when asked by Demerara Waves Online News earlier in the day.. “The net asset holding of commercial banks has gone up as of September or October and so that means that our foreign exchange would have been higher than last year so how can there be a shortage,” he added.
Ganga said the Bank of Guyana has about US$625 million in reserves equivalent to about four months of imports.
Although the US dollar is trading at about GYD$208 (selling) / GYD$213 (buying), Ganga maintained there is sufficient US currency in the foreign exchange market.
The Bank of Guyana Governor said from time to time the Central Bank has been putting in US dollars on the foreign exchange market to ensure there are smooth transactions.
Due largely to a fall in oil prices in neighbouring Trinidad and Tobago, and Suriname; those countries have been suffering from serious foreign exchange shortages. Guyana’s foreign exchange market has been largely dependent on the export of gold, bauxite and sugar despite very poor performance of Guyana Sugar Corporation.