– says Finance Minister to meet key stakeholders Monday to examine issues

PRESIDENT, Dr. Irfaan Ali has responded to ongoing talks about the foreign exchange market, noting that the government is no longer responsible for it. Instead, he said the area is largely driven by demand and supply.

The President made these remarks during a press conference at State House where he dealt with a number of pressing issues within the public domain and sought to enlighten the populace on the upwards growth of the economy.

According to the President: “I have been in communication with the private sector, businesses across the country and looking at some of the public commentary, and one of the issues in the public domain is the foreign exchange market, and I’ve seen a lot of debate in relation to the foreign exchange rate and availability of foreign currency.”

Dr. Ali firmly stated that the foreign exchange market and the rate on the market are no longer determined by the government but instead it mostly lies on the shoulders of the market forces of demand and supply.

“Now, it is important for us to understand that the foreign exchange market and the rate on the foreign exchange market is no longer determined by the Government, but to a large extent by market forces of demand and supply…” he related.

Noting that the Vice President, Dr. Bharrat Jagdeo, already elaborated on the role of hoarding by market players, President Ali said that when he examined the statistics from Bank of Guyana, cambios and even listened to the Governor of the Central Bank along with the technical team, it was said that there is adequate foreign currency to satisfy the existing demand.

The Head of State remarked: “…When I reviewed the statistics from the Bank of Guyana, and Cambios and listened to the governor of the central bank and the technical team, they are of the opinion, based on the data, that they have sufficient foreign currency to satisfy the existing demand, and there is continuous surveillance of this; there is a daily reporting mechanism on the clearing of the market by the central bank.”

However, on Monday, Senior Minister with Responsibility for Finance, Dr. Ashni Singh, will be having a meeting with the private sector, central bank, all of the commercial banks, and other key stakeholders to discuss the issue.

The President then said that a report will have to be brought to him based on the consultations in order to further examine the matter.

“I don’t want to go into the details of different sectors today, but I want to assure the Guyanese people that this is a Government they can rely on, and we are a Government that sticks to our commitment,” Dr. Ali affirmed.

COMMITTED

Earlier this year, President Ali 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.

Previously, the Private Sector Commission (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.