Latest update April 19th, 2024 12:59 AM
Jul 20, 2018 News
Authorities are clamping down on the rampant acceptance, especially among city businesses, of foreign currency as a payment for goods and services.
The Bank of Guyana is expected in the coming days to launch a number of sudden visits at known spots, including Regent Street, as part of the crackdown, says Governor, Dr. Gobind Ganga.
In an advertisement Wednesday, the Bank, which is the regulator of commercial financial institutions and Cambios licensed to trade in foreign currencies, said it has received credible information of use of foreign currency.
“The Bank of Guyana notes with concern that some businesses are accepting foreign currency for the purpose of settling payments for transactions- instead of Guyana dollars.”
While Ganga would not immediately go into details, Kaieteur News has learnt from Government officials that authorities have been paying close attention to the Cuban traders in Guyana.
With Chinese retailers and wholesalers in recent years growing in number especially along the Regent and Robb Street, Cubans especially have been coming here with the precious US dollars.
It is believed that upwards of US$2M alone in trade is being done with the Chinese stores each month. This does not include transportation to and from the Timehri airport and accommodations.
About 1,000 Cubans are said to be coming monthly, shopping accessories, clothing and other things.
There have been complaints that the Cubans, unwilling to visit a Cambio or bank because of safety concerns, would hand over their US cash to the willing store owners.
It is believed that a significant part of the monies are making it out of country, outside the normal channels, knowledgeable banking sources admitted.
However, Dr. Ganga stressed that he is not saying that it is only the Chinese stores that are involved.
“We know lots of businesses are doing it. We are saying to you to please abide by the rules and regulations. We do have the mechanisms of surprise raids.”
According to the notice by Bank of Guyana on Wednesday, pursuant to Section (20) of the Bank of Guyana Act 1998, all monetary obligations or transactions in Guyana has to be settled in Guyana dollars.
“The Bank advises that only banks and licensed Cambios are authorized to conduct buying and selling in foreign currency. The Bank of Guyana Act 1998, and dealers in Foreign Currency (Licensing) Act 1989 provide penalties for violations, which include fines and imprisonment.”
The Bank warns that any person caught contravening the Bank of Guyana Act 1998 and the Dealers in Foreign Currency (Licensing) Act 1989 will be prosecuted.
Officials said that situation has been handled very carefully as Cubans don’t want to be carrying large wads of cash because of the obvious security reasons.
The Governor, though, urged that the Cubans convert their monies at the Cambios or commercials banks.
There were even accusations that some stores are placing US dollars prices on their goods with one major supermarket chain said to be illegally accepting foreign currencies for goods purchased.
Cuban shoppers have been capitalizing on the Guyana shopping because there are no visas required and because of direct flights between the two countries.
In recent years with what is happening around the Caribbean – a shortage of foreign currencies-, especially in Trinidad and Tobago and Venezuela, Government here has been warning against hoarding.
Guyana is expected to feel the squeeze later this year with sugar down, rice not doing so well, and gold expected to take a beating from poor weather and bad hinterland roads.
Please share this to every Guyanese including your house cats.
Apr 19, 2024
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