–President Ali says analysis shows there is no shortage but authorities prepared to step in if the need arises

ALTHOUGH the government is prepared to make any intervention necessary to address a detrimental shortage of foreign currency, analyses carried out by the government have concluded that there is no shortage in Guyana.

The private sector has consistently highlighted the challenges faced by local companies in accessing foreign exchange.

President, Dr. Irfaan Ali, on Tuesday, underscored that his government remains committed to working in partnership with the private sector to address the extant challenges facing its membership, and the country as a whole, including issues pertaining to any disruption to the availability of foreign exchange. However, the country has not reached the point of a need for intervention.

“We have done an analysis of the foreign currency market and we are not convinced there is any shortage; our analysis and our discussions with private sector organisations have prompted us to urge improvement of inter-bank foreign currency transactions.

“This, we believe, would improve the efficiency of the local foreign exchange markets. We are monitoring the situation and will make any interventions that are necessary since we recognise that any depreciation or shortage of foreign currency will have an effect on inflation and commerce,” the President said.

Last month, the PSC together with the Guyana Association of Bankers Inc. held cordial discussions with Governor of the Bank of Guyana, Dr. Gobind Ganga regarding the ongoing challenges faced by local companies in accessing foreign exchange.

According to a press release from the PSC, stakeholders agreed that despite there being a shortage of foreign currency 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 emphasising 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 had all agreed to address the issues raised and promised to collaborate and work together for the benefit of all concerned.