Glenn Lall rubbishes Jagdeo’s justification for low value of Guyana $$$

Apr 14, 2025 News

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…says no leader would justify high cost of US currency 

Kaieteur News- With one US dollar currently worth at least GYD$200, businessman and anticorruption advocate, Glenn Lall, believes that the explanation presented by Vice President Bharrat Jagdeo for the US-currency maintaining such a high value is “senseless.”

Lall, during his Friday evening radio programme on 99.1/ 99.5 FM, rubbished the justification proffered by the former Finance Minister and Head of State at a recent press conference. Previously, the VP, when asked about the value of the Guyana dollar, said, “For us, we are very comfortable that the system is clearing, and I said before we are gonna manage this carefully to ensure that we don’t have any appreciation of the currency too. We don’t want that to happen, and we have made it (clear). We’ve explained this 100 times; people say, why don’t you allow the currency to come 200 to one and stuff like that- it would kill certain sectors- the same Dutch disease.”

In explaining the current situation, Lall told listeners and viewers of his programme, “If one US dollar is presently 200 dollars, and a tin of sardine is $200: – you can only buy one tin, nah true?  If the US dollar come down $100 for $1, it means you can buy two tins sardine, correct, yes?  So why would any leader want to keep the US dollars at $200 for 1: when it can only buy one tin and not two? That is basic common sense.”

The newspaper publisher pointed out that Guyana currently imports most of its needs, including food, clothing, shoes and vehicles. Consequently, he pointed out, “If our dollar becomes stronger, you are stronger, your pay cheque is stronger, meaning you can buy more of the things you consume.  Simply put, you can buy more food, more clothes, more shoes, more vehicles, more bulldozers, more tractors, more everything, cheaper.”

Meanwhile, should the US dollar remain at its current rate, Guyanese will continue to face high costs for these goods. Lall argued, “Every leader of every country on earth does their best, tries their best to strengthen their currency against the US dollar, especially when they have to import so much to keep their people going.”

Consequently, he concluded that, should the value of the US dollar drop, life for Guyanese will become easier.  The businessman highlighted that Jagdeo’s excuse for keeping the US dollar high is the Dutch disease and invited listeners to judge for themselves whether the explanation provided was “sensible”.

Dutch Disease

“This term, ‘Dutch Disease’, came out of Holland. It is when a country discovers huge wealth, like oil, and money starts to flow in the country. People stop working and if they do work, they want double or triple the money they used to work for, so what does that lead to, the traditional crops that used to keep the country going is pushed in the corner, because your price is too high and you can’t compete with the world price,” Lall explained.

He believes that Guyana is faced with this issue without even enjoying its oil money, as he pointed to the refusal of workers to accept less than $20,000 daily for a job in the interior.

Moreover, he said, “We are already living with the Dutch Disease…look at it, the entire agricultural sector is struggling – in a mess.  Sector after sector complaining there is no workers…is a dead industry. They just propping it up so they can thief the money from the Treasury, and this is what has been happening for the last 30 years.  At least PNC had some sense and started closing down some of the sugar estates, but this former president, who thinks he is clever, telling we about Dutch Disease.”

He noted that Trinidad and Tobago was also forced to shut down the sugar estates as they were losing money years ago. “Today, Bharat Jagdeo walking in that same footstep, trying to tell Guyana that sugar could be saved, not the oil, not the gold, not the bauxite.  Instead of fighting to get more from our rich resources, like that oil, he studying about sugar.  Sugar that is now sitting in a wheelchair and allowing the Mercedes Benz and the Lexus to drive away from us.”

Exports

Shifting his attention to another questionable excuse proffered by the VP, Lall highlighted that Guyana’s exports are not as significant as its imports. He reasoned, “In his mind, in his economics, he believes what Guyana exporting, if the US dollar go down, it will affect those exports – so he is protecting that…if Guyana was exporting huge amounts of products, yes, there would have been room in my head, as a businessman to accommodate what Jagdeo is saying, but what are we exporting uncle?   If you tell me Banks Beer and Rum, yes, but how much US dollars that is bring in? Basically nothing.”

The newspaper Publisher argued that fish, shrimp, sugar and rice exports, along with other agricultural products, are “dead”, as he questioned the logic of bountiful earnings from these industries. In conclusion, Lall told listeners that many of Guyana’s neighbouring countries, including Trinidad, Suriname and Barbados, enjoy a higher value of their currency in comparison to Guyana, as he blamed leaders for failing to ensure Guyanese enjoy a better life.

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• currency, Dutch diseas, export, Glenn Lall, Jagdeo, value

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