‘No hike in currency’


…Central Bank rubbishes Kaieteur News story
…Governor says only one cambio has increased currency price above $218

THE Bank of Guyana (BoG) has denied reports of an exorbitant hike in the price for the United States Dollar (USD).

Following reports from a section of the media that cambios were selling for as high as GYD$233 for US$1, the Central Bank conducted an investigation and found that all cambios, with the exception of one, were selling below GYD$218.

“With the exception of one cambio, the rate is below $218,” said Governor of the Bank of Guyana, Dr. Gobin Ganga, in an invited comment on Tuesday.

Dr. Ganga maintained that persons can visit any commercial bank and get USD at a selling price of $215 to $216.

“You would not get an unlimited amount, but you would get,” the BoG governor said. According to reliable sources, although the banks and cambios have been selling at a stable price, persons on the streets have been selling at a higher rate.

In light of this, Dr. Ganga said the bank will continue to monitor the situation and implement appropriate measures where necessary. “We will also continue to monitor cambios to ensure that they abide by the three dollars spread and ensure that others are not exploiting the market,” he said.

The Guyana Chronicle visited various cambios and found that most of them were buying USD for between $213 and $216 and selling for between $216 and $218.
In addition, Republic Bank and Demerara Bank were both selling USD at the $211 rate while the Bank of Guyana was selling for $210 on Tuesday.

Over the past few years, there has been an increase in the demand for USD and recognising this demand, the BoG had released over US$6M in cash to commercial banks, said Dr. Ganga.

In February this year, Dr. Ganga had debunked claims that there is a shortage of US currency in the banking system. “There is sufficient foreign exchange in the market. As a matter of fact, for the banks’ cambios, we have almost US$50M available for those who want to purchase foreign exchange,” Dr. Ganga had said.

He had, however, noted that there may be hoarding taking place and coupled with the demand for US dollar notes by foreign nationals, this could be responsible for the claims of currency shortage.