Amid ongoing US currency access delays: Govt injects US$100M into foreign exchange market

The Government of Guyana on Monday announced the immediate injection of US$100 million into the financial system to alleviate delays in accessing foreign currency.

This decision was made during a high-level meeting on Monday afternoon, where Vice-President (VP) Dr Bharrat Jagdeo and Finance Minister Dr Ashni Singh, alongside Central Bank Governor Dr Gobind Ganga, engaged with chief executive officers and other representatives of commercial banks.
The meeting focused on recent developments within the banking sector, particularly concerning the foreign exchange market.
According to a Government release, officials noted that while there remains an overall adequate supply of foreign currency within the financial system to meet ongoing demand, “occasional timing differences” have led to delays in the settlement of foreign currency orders at some commercial banks.
To address these mismatches, the Government has authorised the immediate injection of US$100 million, which will be distributed across all commercial banks. The move is expected to provide short-term relief and ensure that pending foreign exchange requests are processed without further delay.
“This injection will provide immediate relief to the system in meeting pending demand for foreign currency, while the temporary timing mismatches unwind themselves,” the statement said.
The Government also reaffirmed its continued engagement with the private sector and the banking community to maintain the efficient functioning of the foreign exchange market.
This latest measure follows a similar intervention last month when the Bank of Guyana injected US$35 million into the system to stabilise foreign currency access. That move was confirmed by VP Jagdeo on one of his weekly press briefings, where he emphasised the Government’s commitment to maintaining a balance between supply and demand for foreign exchange.
Jagdeo had explained that while Guyana has sufficient reserves and the capability to inject foreign currency as needed, authorities must act cautiously to avoid overcorrection. “Too much foreign currency at once can lead to an appreciation of the Guyanese dollar,” he said, warning that such a shift could harm key export sectors like agriculture and manufacturing by making them less competitive internationally.
Over the past several months, local businesses have reported significant delays in acquiring foreign currency for international transactions. These issues, coupled with surging demand for imports, have put a strain on the country’s financial system.
President Dr Irfaan Ali had previously noted that the demand for imported goods—ranging from food to vehicles—grew by 106 per cent between 2019 and 2024, while the importation of fuel, chemicals, and other intermediate goods surged by 160 per cent. Additionally, there has been a 317 per cent increase in credit and debit card usage over the same period.

To support this growth, the sale of foreign currency to commercial banks rose by a staggering 1744 per cent between 2019 and 2024. However, the administration has acknowledged that this rapid expansion also requires careful monitoring to prevent misuse of the local banking system for foreign markets.
President Ali has confirmed that a probe is ongoing into possible exploitation of Guyana’s foreign currency system. “We have to see whether there are other markets that are buying through our system for their markets, and that is something we are looking at,” he had said in December.