Some delays persist in accessing foreign currency, Gov’t says it is monitoring situation

Business operators in Guyana continue to express frustration over delays in accessing foreign currency from banks, with some reporting that requests take up to three weeks to be processed.

Vice President Dr. Bharrat Jagdeo confirmed that the government is closely watching the situation. “We are monitoring it,” he said, noting that multiple requests by individual companies can sometimes slow the process.

“A lot of the businessmen, when we look at the framework, we see multiple requests. They’ll go to five banks and put in the same request at several banks. Some people still think they can beat the system, especially groups that are not Guyanese, where we see leakages for goods going to Trinidad.”

Jagdeo highlighted that while legitimate businesses with strong banking relationships can access funds within three weeks, accessing currency in neighbouring countries such as Trinidad can take up to six months for even small amounts. “If they have good relations with the banks, then they get resources. We have adequate funds to inject in the banking system,” he said.

He explained that a shortage of physical banknotes is contributing to higher costs and delays. “There is a bigger shortage of notes, though, and that pushes up the cost price of notes, like the exchange rate for notes versus the bank drafts,” Jagdeo said. “The illicit users want to buy the notes because they can’t come through the banking system. Some companies, like some Chinese companies and others, go and buy the notes and are prepared to pay more. That’s creating a shortage of the notes more than anything else.”

Jagdeo also raised concerns about individuals taking large sums of cash out of the country, including to destinations like Panama. “They declare it, but they take it out in bundles. They should be using the banking system if it’s legitimate, not to take physical cash. It puts more strain on the availability of physical currency because bank drafts are easier to manage.”

The Vice President emphasised that the government is committed to ensuring the formal banking system remains the primary channel for foreign currency transactions and that measures are being taken to curb abuses and leakages.