Concerns over deteriorating Guyana dollar is “small group” causing “hysteria”- Government

The concerns raised by the Guyana Manufacturing and Services Association (GMSA) concerning an increase in foreign exchange have been described as inaccurate.

Minister of State, Joseph Harmon today (March 23, 2017) told media operatives that this is a “type of hysteria” that is being created by “a very small segment of the financial market”. He noted that the issue would be addressed by the Governor of the Bank of Guyana, Dr. Gobind Ganga after consultation with the Ministry of Finance.

According to Harmon, the Governor has already advised him that the statement by the GMSA “was not, in fact, accurate since the 2/3 of the one represented a very small portion of the financial market and it has to do with the operations of Debit and Credit Cards.”

He added that at the end of last week, the selling rate for US was $216 and the buying price was $214.

In a statement yesterday (Wednesday, March 22, 2017), the GMSA has expressed concerns with the rate of deterioration of the Guyana dollar.

The Manufacturers said they are (disappointed) at the rate of deterioration of the Guyana dollar and has estimated that the real exchange rate when available being used for the purchase of foreign exchange is $230.00 for the replacement of imported inputs into the sectors.”

They added that the rise in the price of the U.S. dollar would have far reaching effects on our country as a whole both socially and economically, adding that this situation has the potential to increase unemployment further and at worst wipe out Companies.

As such, the association is seeking intervention from the Government to take steps to stabilise the value of the Guyana Dollar immediately by injecting funds into the system.

The Private Sector Commission (PSC) has also supported this call for government’s intervention. However, Chairman of the Commission, Eddie Boyer don’t think there is a need for such alarm.

“The currency is not a fixed currency, it can go down to $219 today, and I think that is determined by the supply and demand. People say it’s at $230. Obviously, they have proof but I mean I don’t think that we should be selling the currency short, and it keeps rising and all of that. I think there should be some intervention by the Central Government and the Central Bank,” Boyer said.

According to the Bank of Guyana exchange rate, US$ is being sold at GYD$205.98.