…situation improved in recent weeks

GOVERNOR of the Bank of Guyana, Dr. Gobind Ganga has reiterated his position that the Central Bank’s statistics show that there is sufficient foreign exchange in the banking system to meet demands. He affirmed that there are other factors contributing to the perceived scarcity of foreign exchange, including the speculative demand for foreign currency.
Noting that the situation has improved in recent weeks, the Central Bank’s representatives contend that they are of the firm conviction that there is enough foreign currency in the financial system to meet demands.

This disclosure was made last Thursday when Dr. Ganga and technical representatives of the Central Bank met with a team of senior representatives of the Georgetown Chamber of Commerce & Industry (GCCI). The GCCI team was led by its president, Mr. Deodat Indar; past president, Mr. Vishnu Doerga and its Executive Director, Mr. Kirk Hollingsworth.
The purpose of the meeting was to discuss the GCCI’s concerns about the foreign currency market, and was a follow-up to a previous meeting held with the Minister of Finance on 13 April, 2017.

During last Tuesday’s meeting, a request was made by the GCCI’s president for a small group,comprising of Bank of Guyana technical Staff,its Governor and private sector officials (including the GCCI) to be established to work together to examine the issues affecting the foreign currency market and the issues being faced by the business community.
The GCCI outlined its concerns to the Bank of Guyana and both sides discussed in detail the issues affecting the supply of foreign exchange. Those issues include: declining foreign direct investments; declining Guysuco foreign currency earnings and declining exports of locally manufactured goods and services.

The Bank of Guyana and GCCI both acknowledged reduced performance and lower commodity prices on the international market for Guyana’s traditional commodity exports (apart from gold), affecting the country’s foreign exchange earnings and balance of payments deficit.
The Central Bank also mentioned that commercial banks, unlike non-bank cambios, are obligated to perform due diligence checks before they transact business.
The meeting concluded with the Central Bank agreeing to continue its constructive collaboration with the GCCI – the leading private sector body in the country.

For its part, the GCCI welcomed the opportunity to have a frank and candid conversation about its concerns with the Governor of the Bank of Guyana and agreed to review the situation in the near future with the Bank of Guyana.
Established in 1889, the GCCI is committed to the enhancement of community prosperity through advocacy, access to leaders, economic development, connectivity and business education.

Its vision is to be Guyana’s leading business organization, providing maximum opportunity and value to those who participate by being the driving force behind business people, living, learning and growing together in a rapidly changing business environment.