In a decisive move to alleviate delays in accessing foreign currency, the Government of Guyana has injected US$100 million into the financial system. This intervention comes amid mounting complaints from businesses and individuals about difficulties in obtaining foreign currency for international transactions.
The announcement was made on Monday following a high-level meeting between Vice President Dr. Bharrat Jagdeo, Finance Minister Dr. Ashni Singh, and Central Bank Governor Dr. Gobind Ganga. The meeting included chief executive officers and representatives of commercial banks and focused on addressing challenges within the foreign exchange market.
According to officials, while the financial system has an adequate overall supply of foreign currency, timing mismatches have occasionally led to delays in processing orders at some commercial banks. The US$100 million injection is intended to provide immediate relief by ensuring that pending foreign exchange requests are settled promptly as these mismatches unwind.
“This injection will provide immediate relief to the system in meeting pending demand for foreign currency,” a government statement noted. The funds will be distributed across all commercial banks to ensure equitable access and efficient processing of transactions.
This latest measure follows a similar intervention last month when the Bank of Guyana released US$35 million into the market to stabilize foreign currency availability. Vice President Jagdeo has emphasized the government’s commitment to maintaining a balance between supply and demand while avoiding overcorrection that could impact key export sectors like agriculture and manufacturing.
The foreign exchange shortage has been exacerbated by surging demand for imports, which grew by 106 percent between 2019 and 2024. Fuel, chemicals, and other intermediate goods saw an even greater increase of 160 percent during this period. Additionally, credit and debit card usage skyrocketed by 317 percent, further straining the financial system.
President Dr. Irfaan Ali has acknowledged these challenges and confirmed that investigations are ongoing into potential misuse of Guyana’s foreign currency system by external markets. He noted that authorities are examining whether other countries are exploiting Guyana’s banking system for their own markets, which could be contributing to the shortages.
With this latest intervention, the government aims to restore confidence in the banking system and ensure that businesses can continue operating smoothly without disruptions caused by foreign currency delays. The administration has pledged ongoing engagement with the private sector and commercial banks to maintain efficiency in the foreign exchange market as Guyana’s economy continues to grow rapidly.
