The Bank of Guyana has injected US$35 million into the local banking sector to help resolve foreign currency shortages, Dr Bharrat Jagdeo, Vice President and General Secretary of the People’s Progressive Party (PPP), confirmed at a press conference on Thursday.
Addressing concerns raised, Jagdeo assured the public that the government is monitoring the foreign currency market and intervening strategically to maintain a balance between supply and demand. He emphasised that while the government has the capability to meet legitimate demand, interventions are being carried out carefully to avoid negative economic impacts, such as excessive currency appreciation and Dutch disease.
Dr Jagdeo explained that the Central Bank is closely monitoring the foreign currency market and steps are being taken to address mismatches between supply and demand. He added that the Bank of Guyana is prepared to inject as much foreign currency as necessary into the system to meet the legitimate demand.
“As I said before, we have the capability of putting as much foreign currency into the banking system as is needed… to meet legitimate demand,” Dr Jagdeo stated.
However, he warned that such interventions must be done carefully and strategically. If too much currency is injected into the system too quickly, it could cause the local currency to appreciate excessively, potentially harming sectors such as agriculture and manufacturing.
“If you put too much money in at once, you cause appreciation of the currency… that could ultimately lead to the Dutch disease; that is what is considered,” he explained.
In the latest exchange rate update from the Central Bank, the buying price for USD stands at $207.98, with a selling price of $210.45. The Canadian dollar is listed with a buying price of $145.67 and a selling price of $147.36, while the EURO’s exchange rate is reported at a buying price of $225.01 and a selling price of $227.90.
