Street buying US for $236… Central Bank confirms unavailability of US notes created situation

Oct 12, 2019 News

There is more confirmation that there is a shortage of US dollar notes on the market.

Central Bank governor, Dr. Gobind Ganga, meeting with PSC’s chairman, Captain Gerry Gouveia yesterday.

Yesterday, a worried Private Sector Commission (PSC) met with the Governor of the Bank of Guyana, Dr. Gobind Ganga to discuss the matter.
Representing the PSC was Captain Gerry Gouveia.
According to the commission, it has been taking note of the publicly expressed concerns about the rising exchange rate of the US dollars to discuss the potential negative impact on the business community and the economy.
PSC said that the meeting was a constructive engagement.
“The PSC was briefed on the situation and the mitigating measures being taken by the Bank of Guyana.
The PSC was advised that the matter is mostly due to the unavailability of U.S dollar notes and not access to US currency to facilitate transactions such as payment for USD debit/credit cards and wire transfers.”
PSC said that the Bank, as regulator of the finance systems, assured that it is pursuing prudent measures to ensure exchange rate stability.
Kaieteur News, after more than a week of complaint, broke a story on Sunday where money changers on the street said that there is a huge demand for US notes and that this has helped drive the exchange rates to over $230 for US$1.
While the banks had US dollars to effect wire transfers, it was the cash that was short.
On the road, the cambios were providing, but one had to pay over $230.
A combination of factors has been fueling the situation.
Not only from Trinidad and Tobago and the US sapping up the cash, but lately, an increase in trade with Venezuela, which is struggling for foreign exchange, has nudged the rate further up.
In addition to the telephone companies, Suriname, Barbados and Venezuela have all been demanding cash.
The region has been facing a major foreign currency problem with their businesses and traders turning to Guyana for foreign currency.
In recent days, the Minister of Finance, Winston Jordan, has said that a probe has been launched.