Former Finance Minister Asgar Ally is working with the Office of the President to examine the composition of foreign currency demand and determine whether funds obtained locally are being diverted to finance operations elsewhere, President Irfaan Ali has disclosed.
Ali made the disclosure during a press conference on Monday while responding to questions about reported leakages in the foreign exchange market and the steps being taken to address unmet demand.
The President said he had met representatives of the commercial banks who informed him that foreign currency requests carried over from previous months because they had been unable to meet the full monthly demand.
According to Ali, outstanding demand in the banking system is now just over US$200 million.
“They are looking at the structure of that demand,” he said, adding that another meeting would be held after his return from the United Nations.
Ali said the government was also examining whether foreign currency obtained here was being used to finance other operations.
“Whether there is misdirection or financing of other operations from foreign currency here in Guyana, that type of analysis is being looked at very, very closely,” he said.
“You know, Mr Asgar Ally is working with my office also in helping us to understand the structure of that demand. He has tremendous experience also,” the President added.
Ali said Ally was also examining the increase in private sector demand and what accounted for it.
The President did not say in what formal capacity Ally was working with his office, when the engagement began or whether a report would be made public.
Ally served as Minister of Finance under the PPP/C administration of the late president Dr Cheddi Jagan after the party took office in 1992. He later resigned paving the way for Bharrat Jagdeo to take over the finance portfolio. He then made a brief foray into politics as the head of his own party.
Ally is also a former deputy governor of the Bank of Jamaica and has extensive experience in banking and economic policy.
In 2021, he told Stabroek News that Guyana needed smaller banks to widen access to financing and increase competition, particularly as oil production attracted larger investments. He had suggested that established regional institutions could enter the local market while expanding financing options.
Ali’s disclosure comes amid persistent complaints by businesses and members of the public about difficulty sourcing United States currency through the commercial banks, notwithstanding repeated assurances that sufficient foreign exchange is available in the system.
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