Head of the Georgetown Chamber of Commerce and Industry (GCCI) Timothy Tucker has responded to the Bank of Guyana’s statement on its concerns raised regarding the shortage of foreign currency in the country.
Tucker discredited the Central Bank’s justification on the matter, arguing that “when the private sector businesses can’t pay or have to pay more for money to buy for imports, who will suffer??”
The GCCI and the Central Bank on Thursday traded barbs over the issue. The Chamber had issued an official statement lambasting the BoG for its failure to act.
Noting that the private sector has been complaining of a lack of foreign currency, particularly US dollars, on the market since 2019, the GCCI said it “views the Central Bank’s inaction to activate mitigating strategies to address the foreign currency situation as a disregard for business.”
The Chamber also contended that “an independent intervention is needed since the GCCI has lost confidence in the leadership of the Bank of Guyana or its capacity to implement policies that will guide Guyana’s financial sector to support growth being experienced in the real sector.”
The Central Bank issued a statement in response, stating that it is an independent central bank with a clear mandate defined by law and in keeping with international norms and standards for central banking.
“The GCCI appears to be of the mistaken impression that the BoG exists to ensure that foreign currency is available to their membership at the times that they demand and at prices that they demand. This is simply not how an open market economy operates, and is simply not how foreign currency availability and pricing are determined where floating currencies are concerned,” the BoG’s missive detailed.
But Tucker, in a social media post in response, argued that “the mere fact that agents for shipping companies have to open USD accounts at local banks, force local businesses to pay their freight in USD in country, shows there’s a major problem, several things will happen.”
He argued that, “prices will go up, USD shortage will get worst, it will become more difficult to do business in Guyana…”
“…already Credit Card exchange rates have gone up, shortages of raw materials causing a slowdown in production which will lead to shortages of food, ultimately the greater devaluation of the Guyana dollar, which will make us uncompetitive locally where the bulk of business is done and money is being spent, key imports for the construction sector will also go up and supply issues will once again be upon us.”
“It’s amazing that the BOG would say it’s not their responsibility and that the market will sort it self out, history has shown that the BOG usually intervenes and that’s the role of BOG to stabilise, secure money and mitigate inflationary pressures. The evidence is in their own report, the lack of action, deliberately or otherwise is there for all to see.”
