US$35M injected into banking sector to address foreign currency concerns

The Bank of Guyana has injected US$35 million into the local banking sector to address concerns about foreign currency shortages, Vice President and General Secretary of the People’s Progressive Party (PPP), Dr. Bharrat Jagdeo, announced on Thursday.

Speaking at a press conference, Dr. Jagdeo emphasized that the government is strategically managing foreign currency supply and demand. He assured that the central bank continuously monitors the market and intervenes when necessary to correct imbalances.

“As I said before, we have the capability of putting as much foreign currency into the banking system as is needed… to meet legitimate demand,” Dr. Jagdeo stated.

However, he cautioned that such interventions must be carefully managed to avoid excessive currency appreciation, which could negatively impact agriculture and manufacturing and potentially lead to economic challenges such as Dutch disease.

“If you put too much money in at once, you can cause an appreciation of the currency … that could ultimately lead to the Dutch disease; that is what is considered,” he explained.

The latest exchange rate update from the Central Bank lists the USD buying price at $207.98 and the selling price at $210.45. The Canadian dollar is being bought at $145.67 and sold at $147.36, while the Euro’s buying price is $225.01, with a selling price of $227.90.