In an effort to ease delays in the availability of foreign currency, the government of Guyana on Monday announced the immediate injection of US$100 million into the financial system.
The decision came out of a high-level meeting involving Vice-President Dr. Bharrat Jagdeo, Finance Minister Dr. Ashni Singh, and Central Bank Governor Dr. Gobind Ganga, who met with CEOs and representatives of commercial banks to address recent concerns in the banking sector.
The meeting, held Monday afternoon, focused on the state of the foreign exchange market and what government officials described as “occasional timing differences” that have led to delayed settlements of foreign currency orders at some banks.
According to a government statement, while the overall supply of foreign currency remains adequate to meet national demand, the injection of funds is intended to help commercial banks process outstanding requests more quickly.
“This injection will provide immediate relief to the system in meeting pending demand for foreign currency, while the temporary timing mismatches unwind themselves,” the statement said.
The US$100 million will be distributed among all commercial banks and is expected to offer short-term relief while the government continues to monitor and manage foreign exchange flows.
The latest intervention follows a similar move in March, when the Bank of Guyana injected US$35 million to stabilise access to foreign currency. At the time, Vice-President Jagdeo underscored the administration’s commitment to maintaining balance in the system.
“Too much foreign currency at once can lead to an appreciation of the Guyanese dollar,” Jagdeo had explained at a weekly press briefing, noting the need for caution to avoid overcorrection. He warned that such a shift could negatively affect export sectors like agriculture and manufacturing by making them less competitive on the global market.
Over recent months, businesses have raised alarms over increasing delays in accessing foreign currency, citing mounting challenges in conducting international transactions. These challenges have coincided with a sharp rise in import demand. President Dr. Irfaan Ali recently highlighted that between 2019 and 2024, the demand for imported goods—ranging from food items to vehicles—grew by 106 per cent. The importation of fuel, chemicals, and other intermediate goods also surged by 160 per cent, while credit and debit card usage soared by 317 per cent during the same period.
To meet this growing demand, the sale of foreign currency to commercial banks rose dramatically—by 1744 per cent—between 2019 and 2024. However, government officials have acknowledged that the system’s rapid expansion also requires vigilance to avoid abuse.
President Ali has confirmed that an investigation is underway into potential misuse of Guyana’s foreign currency market by external entities. “We have to see whether there are other markets that are buying through our system for their markets, and that is something we are looking at,” he said in December.
The administration has pledged ongoing collaboration with the private sector and banking institutions to ensure the stability and efficiency of the country’s foreign exchange market.
