The Bank of Guyana has taken a decisive step in the direction of addressing the reports of foreign exchange shortage, whereby they have sent out a circular to all bank cambios to report their foreign sales to the Guyana Revenue Authority (GRA).
According to a circular sent out under the pen of the Bank of Guyana Governor Dr Gobind Ganga, bank cambios are now being requested to submit their invoices to the Commissioner General of the GRA.
“Bank of Guyana is taking a number of measures to address the current foreign exchange situation. One area of concern is the importation of goods which requires a valid import invoice as set out in Bank of Guyana Circular No. 05/2017.”
“The bank is now requesting all bank cambios to submit invoices against which foreign currency is sold, to the Commissioner General, Guyana Revenue Authority for the attention of the Head of the Customs Department,” the bank governor further said in the circular.
Only last week, the Private Sector Commission (PSC) in association with the Guyana Association of Bankers Incorporated met with and had discussions with the Bank of Guyana Governor with regard to the challenges faced by some local companies in accessing foreign exchange.
Stakeholders, a PSC release stated, have agreed that despite there being a shortage of foreign exchange at some banks, there is no overall shortage of foreign exchange in Guyana given that the aggregate supply of foreign exchange is meeting the aggregate demand and therefore the market remains in equilibrium.
According to the PSC, the Governor of the bank confirmed that while there is an intra-bank market that enables banks to share, the Central Bank must rely on moral persuasion in an effort to achieve a more efficient distribution of foreign currency availability. He also emphasised the fact that it is the responsibility of the Central Bank to ensure that the Government meets its macro-economic objectives.
The PSC, the Bankers’ Association, and the Bank of Guyana had all agreed to address the issues raised and promised to collaborate and work together for the benefit of all concerned, the release stated.
Previously, Vice President Bharrat Jagdeo had weighed in on the issue and said that the Guyana Government is going to consider the implementation of a daily reporting system to monitor the flow of foreign currency.
“We’ve been exploring something. I was thinking about this and we have to discuss it with the Finance Minister, that maybe we need a daily balance reported to the Central Bank of currencies purchased and sold, the daily balance at all the institutions, and then the list of demands. And you will see in most cases, that they are clear [of any shortages], but it’s just that [the US dollars] exist in different institutions,” the Vice President had explained during a press conference.
According to the Vice President, the foreign currency market in Guyana always has seasonal variations such as around the Christmas holidays when visitors come in and there is more foreign currency circulating. Likewise, he pointed out, there are low periods and it is during this time that more foreign currency will have to be supplied to the market.
Only recently, Attorney General and Legal Affairs Minister Anil Nandlall, SC, had stated that companies or individuals cannot force anyone to pay for transactions done in Guyana in foreign currency unless special permission is granted by the Finance Ministry for them to trade using solely foreign currency.
