Probe ongoing into exploitation of foreign currency availability in local banks – Pres. Ali

The availability of foreign currency in the local banking sector has been fluctuating throughout 2024 as the demand for imported products continues to rise.

Following complaints from the business community, President Dr Irfaan Ali has revealed that a probe is ongoing into the possible exploitation of systems that manage the use of foreign currency in the country.

On Sunday, President Dr Irfaan Ali went live from his Facebook Page to speak about the rapid expansion of the local economy and its impact on the availability of foreign currency.

“Everything is linked to the expansion that is taking place, everything is linked to the policy, everything is linked to the performance of the economy and of course all of this demands higher foreign currency,” he explained.

Ali disclosed that the importation of consumer goods which include food and motorcars grew by 106% from 2019 to 2014 while fuel, chemicals and other intermediate goods grew by 160%. Meanwhile, he said there has been a 317% increase in credit and debit card usages.

In Guyana, the Central Bank (Bank of Guyana) is responsible for selling foreign currency to the commercial banks. According to the Head of State, the sale to the commercial banks between 2019 and 2024 grew by 1744% to help support the growth and expansion to the economy.

However, as complaints of shortage continues, he said the government is looking at the possibility of exportation of foreign currency to sustain other countries.

“We’re also looking to see where other systems might be exploiting our currency availability in the local banks too, that’s an ongoing issue. We have to see whether there are other markets that are buying through our system for their markets,” the president noted.

Earlier this month, President of the Georgetown Chamber of Commerce and Industry (GCCI) Kester Hutson had contended that whether or not officials fully acknowledge the severity of this problem, the reality remains that businesses are struggling due to difficulties in accessing foreign exchange promptly.

Hutson strongly urged the Government to address this issue at its core.

Vice President Dr Bharrat Jagdeo had recently explained that while the Central Bank can inject as much as US$300 million into the market at any time now, the Government is wary of leakages.