Private sector, Central Bank working together in bid to resolve foreign currency concerns

There is enough foreign currency, spread across the local market, to satisfy demands but the Bank of Guyana, private sector players and the Bankers’ Association agreed to work together to address any issues.

Private sector players are complaining of a shortage of foreign currency, specifically US dollars, needed to conduct transactions locally. Following a clash between the Private Sector Commission (PSC) and the Bank of Guyana, the country’s central back, the two sides met to discuss the issue.

There, it was noted that an interbank network exists to facilitate the sharing of currency among banks but moral suasion, not any rules, is relied upon to encourage the banks to share.

See below the full release issued by the PSC:

The Private Sector Commission (PSC) in association with the Guyana Association of Bankers Incorporated today held cordial discussions with Governor of the Bank of Guyana, Dr. Gobind Ganga with regard to ongoing challenges faced by local companies in accessing foreign exchange.

Stakeholders agreed that despite there being a shortage of foreign exchange at some banks there is no overall shortage of foreign exchange in Guyana given that the aggregate supply of foreign exchange is meeting the aggregate demand and therefore the market remains in equilibrium.

The Governor of the Bank confirmed that while there is an intra-bank market which enables banks to share, the Central Bank must rely on moral persuasion in an effort to achieve a more efficient distribution of foreign currency availability, while emphasizing the fact that it is the responsibility of the Central Bank to ensure that the Government meets its macro-economic objectives.

The PSC, the Bankers’ Association and the Bank of Guyana have all agreed to address the issues raised and promised to collaborate and work together for the benefit of all concerned.