PRESIDENT, Dr Irfaan Ali has begun examining the structure of Guyana’s foreign exchange amid concerns of rising demand within the local economy.

Dr Ali said during a recent press conference that he met with representatives of the country’s commercial banks and was informed that outstanding demand for foreign currency has climbed to just over US$200 million.

According to the president, the banks reported that some of the demand represents a carry-forward from earlier months, as they have been unable to satisfy monthly requests amid the rapid expansion in economic activities.

“They estimate now, for example, their outstanding demand to date, as we speak now, is in the vicinity just over US$200 million. That is what is in the system that is required now. So, they are looking at the structure of that demand,” the Head of State told reporters.

He said the analysis will also examine whether there are any “misdirection or financing of other operations” involving foreign currency in Guyana.

The president said the government is also examining the role of private-sector expansion in driving demand for foreign currency, including the extent to which increased demand is linked to legitimate business activity.

He disclosed that Asgar Ally is helping his office to analyse the structure of the demand, drawing on his experience and examining the increase in private-sector demand.

The president said the government will meet with the commercial banks again after his return from the United Nations to further assess the situation.

The development comes amid continued concerns over the availability of foreign currency in the local banking system, as businesses and other economic actors seek to meet growing demand.

Last year, Dr Ali had announced a series of immediate policy measures to strengthen foreign-exchange management and protect Guyana’s financial system, as the country faces unprecedented demand for U.S. dollars and a surge in credit-card transactions.

Those nine measures included:

Invoices Required for Forex Requests: Any request for foreign exchange at commercial banks must be accompanied by a copy of the commercial invoice.

Verification upon Arrival: Importers will be required to submit the invoice and bill of lading to the Guyana Revenue Authority (GRA) and their banks, once goods arrive, to verify that items were indeed brought into Guyana.

Conditional Access to Future Forex: If customers fail to submit verified documents, their subsequent requests for foreign exchange will not be processed.

Central Bank Clearing Window: Commercial banks will submit invoices and bills of lading to the Bank of Guyana for further verification through a newly established single-window system.

Credit-Card Restrictions: Personal credit cards must not be used to settle business obligations. “We don’t want somebody settling a US$600,000 vehicle purchase for their company with a credit card,” Ali stressed.

Penalties for Inflated Invoicing and Capital Flight: Entities involved in over-invoicing, property transactions, or related-party transfers designed to move capital offshore will face penalties.

Declaration of Currency Sources: Persons leaving Guyana with foreign currency must declare the source, whether from banks or cambios, to enhance transparency.

Local Bank Accounts for Oil & Gas Companies: All entities registered under the Local Content Law must maintain a local bank account into which foreign-currency earnings are remitted. “Local content legislation will be amended to reflect this,” Ali confirmed.

Central Bank Clearinghouse: A single-window post-clearing system will reconcile transactions among the GRA, commercial banks, and the Bank of Guyana before new forex requests are facilitated.