Underscoring the evolution of the foreign currency market in Guyana, General Secretary of the People’s Progressive Party, Dr Bharrat Jagdeo noted that the central bank is well equipped to address all eventualities in the case of a foreign currency shortage.
The general secretary was at the time addressing the media during his weekly press conference at Freedom House.
Dr Jagdeo pointed to the surge in demand for foreign currency over the last 5 years.
In 2020, total imports stood at $2.2 billion. At the end of 2025, the projected figure for total imports stands at $9 billion.
Dr Jagdeo reiterated that the Bank of Guyana has enough resources to inject foreign currency into the system if it becomes necessary.
“I made it clear that the central bank has the capacity to intervene in the market when necessary,” he reaffirmed.
As of the end of 2024, Guyana’s import cover stood at 8.1 months when considering the Total Net Foreign Sector Assets and Reserves (TNFSAR), according to a paper compiled by seasoned financial analyst Joel Bhagwandin.
Import cover typically refers to the number of months that a country can continue to import goods and services if ordinary circumstances no longer exist. This is usually calculated based on the existing foreign exchange reserves held by the state.
Notwithstanding this reality, Dr Jagdeo said that the current foreign exchange market has evolved tremendously as a result of several factors.
Of great impact is the massive shortage of foreign currency in neighbouring Trinidad and Tobago.
A publication issued by Trinidad and Tobago’s Chamber of Industry and Commerce found that 62 per cent of businesses have faced significant delays in paying suppliers.
A whopping 59.5 per cent reported declining profitability owing to foreign currency shortages.
“In Trinidad, it’s practically impossible to get foreign currency…we believe that some of the invoices submitted by companies are inflated…so that when the payment goes to their suppliers, it is for goods that would go into Trinidad and Tobago,” Dr Jagdeo revealed.
Dr Jagdeo, who also holds the portfolio of Vice President, highlighted that some business owners have been taking advantage of this shortage in Trinidad to earn profit for themselves.
“You have some local companies now that are capitalizing on the [shortage]. So, they buy from the banks and the cambios at maybe [GYD 216 for $1 USD] and they are selling to the Trinidadians…they are making money on the side,” Dr Jagdeo explained.
Also, the influx of Foreign Direct Investments (FDIs) has contributed to the pressure placed on the system to circulate foreign currency in a timelier manner. Several international companies have begun to set up shop in Guyana, including a number of internationally branded hotels.
Earlier last month, the Bank of Guyana injected US $100 million into the foreign exchange market to support its circulation.
The injection aimed to provide immediate relief to the system in meeting pending demand for foreign currency, while the temporary mismatches unwind themselves. The government continues to engage closely with the private sector, including the commercial banks, to address challenges as they arise.