–says Dr Gobind Ganga
DEPUTY Governor of the Bank of Guyana, Dr. Gobind Ganga, has assured in invited comments that there is sufficient foreign currency in the market, and it is being traded at “stable” rates.Following reports of hoarding of foreign currency by local traders, a practice blamed for the increased exchange rates and reportedly influenced by uncertainties in the financial sector as a result of the non-passage of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Bill, Dr Ganga explained that all commercial banks are trading, with sales as on Tuesday, March 18, being recorded at as much as $4M.

He added that if there is hoarding of foreign currency, this is quite possibly not being done by the commercial banks, but by people trading in the market.

He said this could be a reaction to rumours of shortages, and is the logical “business decision” by traders, who are looking to increase their returns.

Dr Ganga said, “If the word in the market is that there is not enough foreign currency, then people will buy the currency and keep it in reaction to what is being said. We know what is going on in the market: People are fearful of shortage, and the natural inclination is to pull rates up. That is what is happening….

“There is sufficient foreign currency in the market, and the reports we have had indicate that the exchange rates are stable over the last couple of weeks.”

Dr Ganga added that that is why the Bank of Guyana has made no intervention in the currency market so far.

Bank of Guyana rates as at yesterday were as follows: For the US dollar, buying was at Gy$205.49 and selling was at Gy$207.93; for the Canadian dollar, buying was at Gy$183.82 and selling was at Gy$185.94; for the Euro, buying was at Gy$286.06 and selling was at Gy$289.67; and for the English pound, buying at Gy$341.66 and selling was at Gy$345.94.

Local commercial banks are advertising the more popular US dollar at a buying price of Gy$201 and a selling price of Gy$209.

Dr Ganga noted that the changes in the trading rate should not be a cause for alarm, particularly given that one would expect appreciation or depreciation, depending on the rate of inflation.
By Vanessa Narine