-some transactions at $238
Businesses and individuals are continuing to experience difficulties accessing United States dollars through Guyana’s banking system, with some customers saying they have been waiting weeks for foreign currency transactions to be processed and are being forced to pay significantly more to source US dollars elsewhere.
The concerns have emerged in the face of claims that the limited availability of foreign exchange is affecting businesses’ ability to pay overseas suppliers, replenish imported goods and secure raw materials, with fears that the pressure could eventually be reflected in higher prices for consumers.
Finance Minister Dr Ashni Singh and Bank of Guyana Governor Dr Gobind Ganga could not be reached by Kiskadee Watch for comment.
One person who spoke to Kiskadee Watch on condition of anonymity said a wire transfer initiated at a local commercial bank in July was held for about a month because US dollars were unavailable. The transaction was intended to pay a tour company for flights, but according to the customer, the bank said it could not say when the transfer would be processed because it was waiting for US currency to become available.
The customer eventually cancelled the transaction and made the booking independently, resulting in substantially higher travel costs. The individual also said that sourcing US dollars was very expensive, costing $238 for US$1.
This account is consistent with complaints circulating on social media about lengthy waiting periods at commercial banks for foreign exchange.
One Facebook user, Valmiki Bankay, said that local banks now have waiting lists of more than three weeks even for relatively small amounts of US currency. He said that the situation was hampering businesses trying to replenish imported raw materials and consumer goods and was placing pressure on supply chains.
Bankay further stated that cambios were selling US dollars for more than $235, significantly above the official exchange rate, while arguing that the shortage was contributing to higher prices for imported goods and, indirectly, locally produced agricultural commodities. He attributed part of the pressure on local agricultural prices to farmers’ dependence on imported diesel, chemicals and fertilisers.
Bankay accused the central bank of being “stingy” in releasing foreign exchange and called on Singh and Ganga to review the restrictive policy in place.
“The Minister of Finance, and Dr. Ganga need to urgently review their stingy policy of limiting forex on the market despite Guyana having billions in its forex reserve. Guyanese are feeling the pressures of the (Iran) war and other external factors, but we can’t understand when government has the ability to fix its part but is not moving. You are not on top of things,” he complained.
Another social media commenter questioned why Guyana was experiencing difficulty accessing US dollars despite the country’s substantial oil revenues and foreign exchange reserves, asking: “I can’t understand with all the oil revenue why we’re so strapped for USD. Where the money deh?”
One more commenter said several transactions at GBTI had been pending for weeks as the customer attempted to make payments to suppliers.
Meanwhile, a businessman from L. Mahabeer & Son Cambio said he has not been experiencing a shortage of US dollars, although he noted that the situation could be different at commercial banks.
He told Kiskadee Watch on Thursday that the exchange rate is currently around $237 for US$1 but varies depending on the denomination of the US currency. According to him, lower-denomination US notes generally attract a lower rate, while larger notes carry higher rates. He explained that a cambio may, for example, purchase US dollars at $235 and resell them at $238.
The businessman said the demand for US currency in Guyana also influences the rates, noting that with fewer people coming into the country, holders of US dollars are able to demand higher prices.
The reports have raised questions about the availability and distribution of foreign exchange within Guyana’s financial system, particularly as the country continues to earn significant foreign currency from its expanding oil sector. One of the main concerns is the role of the Bank of Guyana and the manner in which foreign exchange is being supplied to the market.
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