Close Menu
DemocracyGuyana.comDemocracyGuyana.com

    Subscribe to Updates

    Get the latest news from DemocracyGuyana.com

    What's Hot

    Dr Bharrat Jagdeo Asserts PPP/C’s 2025–2030 Agenda Is Non- Negotiable: ‘Our Mandate Comes from the People’

    October 21, 2025

    Under the Microscope: The Crying Siamese Twins

    October 20, 2025

    Why Prince Andrew Is Giving Up His Titles Now — And What It Means for the British Royal Family

    October 19, 2025
    Facebook X (Twitter) Instagram
    • About DG
    • Join as Volunteers
    • Become a Member
    Facebook X (Twitter) Instagram YouTube TikTok
    DemocracyGuyana.comDemocracyGuyana.com
    Jet Global Airways
    • Home
    • Diaspora
    • Guyana News
    • Global News
    • Artificial Intelligence
    • Business Opportunities
    • Advertise with us
    • Photo Gallery
    • Videos
    • World Newspapers
    • Contact Us
    DemocracyGuyana.comDemocracyGuyana.com
    Home»Featured»Financial Analyst allays concerns of injections into foreign exchange market
    Featured

    Financial Analyst allays concerns of injections into foreign exchange market

    Joel BhagwandinBy Joel BhagwandinNo Comments3 Mins Read97,995 Views
    Facebook Twitter Pinterest LinkedIn Telegram Tumblr Email
    Joel Bhagwandin
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Director of Spherex Professional Services, Joel Bhagwandin, believes there is nothing unusual about the US$135 million injected into the economy by the government to address gaps in the foreign exchange market.

    The financial analyst explained that the amount, relative to the size of the economy, is quite appropriate—especially since Guyana has been able to purchase more foreign currency than it has released into the market over the years.

    Bhagwandin was addressing public concerns about the injection potentially eroding the Central Bank’s forex reserves and causing a depreciation of the domestic currency due to poor tariff management amidst the ongoing global trade war.

    However, Bhagwandin stressed that no empirical evidence has been presented to support these claims. He noted that the Bank of Guyana’s (BoG) foreign exchange interventions are standard operations aligned with its monetary policy objectives of maintaining price and exchange rate stability. Moreover, the BoG has purchased more foreign exchange than it has sold.

    “Over the last ten years, from 2014 to 2024, the Bank of Guyana has mopped up more excess forex from the market—US$1 billion—than it has injected—US$0.7 billion. These forex interventions, particularly the sales and net sales/purchases positions by the bank over the review period, accounted for less than or equal to one per cent of the Gross Domestic Product (GDP). From this standpoint, the recent injection of US$135 million into the market is not an unusually significant sum that should give rise to concern,” Bhagwandin suggested.

    He added that, conversely, the Central Bank recorded purchases from the market in 2018, 2020, and 2021, which accounted for less than or equal to five per cent of GDP.

    Additionally, the analyst pointed out that the exchange rate against the US dollar remained relatively stable during the review period (2014–2025), fluctuating within an acceptable, flexible bandwidth of plus or minus four per cent—while some countries operate with even wider bandwidths.

    “Notably, according to the International Monetary Fund’s database, there are countries with flexible monetary policy frameworks whose exchange rate bandwidths are as wide as plus or minus seven per cent to plus or minus 12 per cent,” Bhagwandin highlighted.

    He concluded, however, that the Total Net Foreign Sector Assets and Reserves exceed the minimum threshold of three months’ import cover, having increased from US$916 million in 2019 to US$4.6 billion at the end of 2024, and US$4.7 billion as of the end of February 2025.

    Regarding tariffs, Bhagwandin referenced the United States’ 90-day pause, during which a universal 10 per cent baseline tariff is applied to all countries trading with the US. He maintained that tariff management cannot currently be blamed for any depreciation or appreciation of the local currency.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Joel Bhagwandin
    Joel Bhagwandin

    Related Posts

    Dr Bharrat Jagdeo Asserts PPP/C’s 2025–2030 Agenda Is Non- Negotiable: ‘Our Mandate Comes from the People’

    Under the Microscope: The Crying Siamese Twins

    Why Prince Andrew Is Giving Up His Titles Now — And What It Means for the British Royal Family

    President Irfaan Ali: ‘Our diversity is a blessing to be embraced and celebrated by all during Diwali celebrations.

    World Trade Centre Georgetown, Guyana, to Empower Local Businesses in Accessing Global Markets

    Sabarimala gold theft: SIT arrests priest-turned-businessman Unnikrishnan Potti

    Leave A Reply Cancel Reply

    Top Posts

    The Hollow Ambitions of Nigel Hughes: A Political Opportunist and Exhibitionist with Empty Promises.

    July 11, 2024980K Views

    What do you make of it? by Leonard Craig

    November 18, 2024744K Views

    President Irfaan Ali Emphasises Discipline and Accountability Over Project Delays

    November 13, 2024566K Views
    Don't Miss

    Dr Bharrat Jagdeo Asserts PPP/C’s 2025–2030 Agenda Is Non- Negotiable: ‘Our Mandate Comes from the People’

    Vice President Dr. Bharrat Jagdeo has reaffirmed that the governing People’s Progressive Party/Civic (PPP/C) will…

    Under the Microscope: The Crying Siamese Twins

    October 20, 2025

    Why Prince Andrew Is Giving Up His Titles Now — And What It Means for the British Royal Family

    October 19, 2025

    President Irfaan Ali: ‘Our diversity is a blessing to be embraced and celebrated by all during Diwali celebrations.

    October 19, 2025
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    72

    Over 50 poisoned at wedding in Iraq

    8.9

    EAM Jaishankar Meets Guyanese PM Mark Phillips, Discuss Energy, Disaster Resilience And Defence Cooperation

    Most Popular

    The Hollow Ambitions of Nigel Hughes: A Political Opportunist and Exhibitionist with Empty Promises.

    July 11, 2024980K Views

    What do you make of it? by Leonard Craig

    November 18, 2024744K Views

    President Irfaan Ali Emphasises Discipline and Accountability Over Project Delays

    November 13, 2024566K Views
    Our Picks

    Dr Bharrat Jagdeo Asserts PPP/C’s 2025–2030 Agenda Is Non- Negotiable: ‘Our Mandate Comes from the People’

    October 21, 2025

    Under the Microscope: The Crying Siamese Twins

    October 20, 2025

    Why Prince Andrew Is Giving Up His Titles Now — And What It Means for the British Royal Family

    October 19, 2025
    Popular Categories
    • Global News
    • Election Rigging
    • Sports
    • Special News
    • Guyana and Private Tenders
    Do you want to associate with us
    • Business Opportunities
    • Advertise with us
    • Contact Us
    • www.democracyguyana.com Guyana – London – India

      For more information, contact us.
    DemocracyGuyana.com
    Facebook X (Twitter) Instagram YouTube TikTok
    • Home
    • About DG
    • Become a Member
    • Join as Volunteers
    • Forum
    • Advertise with us
    DG BRANCHES: GUYANA, USA, CANADA, UK, CARIBBEAN, AND INDIA
    © 2025 DemocracyGuyana.com.

    Type above and press Enter to search. Press Esc to cancel.