Measures in place to stabilise US exchange rate – Central Bank

In light of significant increases in the exchange rate of the United States Dollar in the local market, the Bank of Guyana (B0G) has assured that measures have been put in place to stabilise the currency trade.
This assurance was given to Chairman of the Private Sector Commission (PSC), Capt Gerry Gouveia, during a meeting with the BoG Governor, Dr Gobind Ganga, on Friday.

The PSC Head pointed to mounting public concerns about the rising exchange rate of the US Dollar and the potential negative impact on not just the business community but the economy as well.
However, the Commission was assured by Governor Ganga that measures are being taken to mitigate the situation.
In fact, the PSC said it was advised by the Central Bank Head that the issue is mostly due to the unavailability of US dollar notes and not access to US currency to facilitate transactions such as payment for USD debit/credit cards and wire transfers.
Nevertheless, the BoG gave assurances to the Private Sector body that it is pursuing prudent measures to ensure exchange rate stability in the local market.
After reports that the US dollar is trading at cambios for as high as $233 for US$1, both the BoG Governor and Finance Minister Winston Jordan have contended that there was no shortage.
It was noted that high demand for US cash has pushed the rates up.
In fact, Jordan recently pointed out that the commercial banking system has not raised any complaints and that it was the non-bank cambios that has created the issue. To this end, he noted that an investigation has been launched into the matter.
“I haven’t heard a great outcry in the commercial banking system as I am hearing at the commercial non-bank cambios. I am being given to understand that it is at a certain, just one or two of the cambios, that have caused this problem. Our investigation is leading into a certain direction,” he noted.
Nevertheless, the Minister insisted that there is sufficient foreign reserves within the local banking system.
“I can tell you we have adequate reserves. We have almost US$530 million in the banking system. The reserves are nearly US$500 million as at the end of August. The commercial [banks] do have a lot of cash. There is absolutely no question about it,” Jordan said earlier in the week.
However, even as the matter is being investigated by Central Bank and the Finance Ministry, Opposition Leader Jagdeo contended that there is a problem in the local market.