PRESIDENT Irfaan Ali’s announcement of new foreign-exchange controls marks a significant change in Guyana’s method of handling its oil-driven economic growth.
The nine-point policy framework, revealed during talks with commercial bank leaders, is a necessary response to intense financial pressures.
The numbers behind these actions are impressive. Credit card clearances jumped from US$91.3 million in 2023 to US$347.5 million in 2024, with 2025 figures already nearing US$252 million by September, not counting the usual holiday spending spike.
This rapid increase reflects Guyana’s new wealth from oil and an economic expansion averaging 47 percent each year since 2022. However, it also points to possible weaknesses in the financial system that could lead to capital flight and economic instability.
The President’s statement that “we have to protect Guyana’s interests” while ensuring the country can meet foreign currency demands shows a challenging balancing act. With inflation at 4.1 percent as of August 2025 and the Guyanese dollar holding steady around G$209 to the US dollar, the economic basics seem solid. But there are underlying pressures that warrant government action.
The new measures, which include requiring commercial invoices for forex requests and limiting personal credit cards for business uses, take a thorough approach to closing regulatory gaps.
The demand for local bank accounts from oil and gas companies registered under the Local Content Law and the creation of a Central Bank clearinghouse system specifically target areas at high risk for capital flight.
These initiatives connect with broader economic goals, as Guyana’s current account surplus hit 24.5 percent of GDP in 2024, boosted by increased oil exports.
However, these policies raise valid concerns about the regulatory burden and how they might affect business efficiency.
The requirement for importers to provide invoices and bills of lading to both the Guyana Revenue Authority and their banks, along with conditional access to future forex based on document checks, is a policy that needs to be examined and implemented carefully to ensure there are no bureaucratic delays that hinder the very economic activity these measures aim to protect.
President Ali’s warning against “over-invoicing because of related party transactions” and threats of “relevant action” against companies that do not comply indicate a more aggressive regulatory approach.
While such measures are necessary to prevent misuse, they must be clear and consistent to avoid uncertainty that could push away genuine foreign investment—the key to Guyana’s ongoing development.
The timing of these measures, as Guyana’s external position is seen as “stronger than the level implied by fundamentals and desirable policies,” with gross international reserves over US$1 billion, suggests a forward-thinking rather than a reactive strategy.
This proactive method deserves recognition for showing fiscal responsibility during prosperous times instead of only responding to crises.
In the end, President Ali’s forex measures represent a calculated risk. The hope is that stricter financial oversight will hold economic stability while not hindering growth.
Success will rely on how well these policies are implemented, the clarity of regulations, and the government’s ability to keep business confidence while maintaining necessary financial discipline.