– BoG

they demand. This is simply not how an open market economy operates, and is simply not how foreign currency availability and pricing are determined where floating currencies are concerned,” the missive detailed.

In a previous statement last month, the BoG had disclosed that the local banking system, with an average monthly turnover in excess of US$500 million, has an adequate supply of US dollars to meet demand.

sector,” the Chamber posited.

However, even as the GCCI is claiming a shortage of foreign currency, this has been dismissed by the Governor of the Bank of Guyana, Dr Gobind Ganga, who previously contended that there is enough money in the local market.

In a statement issued in response to the Chamber on Thursday, the BoG stated that it is an independent central bank with a the law establishing the BoG also stipulates that the Guyana Dollar is a free-floating currency, traded in a market whose prices are determined by prevailing market conditions, that is to say, demand and supply.

“The GCCI appears to be of the mistaken impression that the BoG exists to ensure that foreign currency is available to their membership at the times that they demand and at prices that

In fact, it was noted that as of February 22, 2023, the banking system had US$99.5 million available for transactions. While the available funds are not evenly distributed among the banks, the BoG has noted that there is enough to cover the cash flow needs of transactions arising from businesses in Guyana.

Moreover, Dr Ganga had previously indicated that some banks could be “hoarding” their foreign currency which could be the cause of the apparent “shortage”.

As a result, key Private Sector players have since indicated that they wrote the Guyana Association of Bankers Inc (GABI) to discuss this matter.

In its Thursday missive, the BoG contended that “the

GCCI’s energies would be better spent engaging either the banks or the bankers’ association, who are also members of the Private Sector, with a view to better understanding the factors that influence the availability and pricing of foreign currency in the domestic market. The BoG remains committed to discharging its mandate and to engaging with the Private Sector on matters of concern to them in a mutually-respectful manner.”

Guyana Times understands that a meeting between GABI and the Private Sector is set for some time next week.