Vice President Dr. Bharrat Jagdeo has rejected claims that Guyana is facing a foreign exchange crisis, insisting that the country’s reserves and inflows remain robust. He attributed the recent spike in demand for U.S. dollars to heavy borrowing by companies financing major infrastructure and capital projects.
“Once those projects are finished, the demand goes down,” Jagdeo told reporters Thursday at the Arthur Chung Conference Centre. He added that the landmark Gas-to-Energy (GTE) project will eventually reduce imports of fuel and cooking gas, further easing demand on foreign currency.
According to Jagdeo, fears of capital flight are misplaced. Instead, Guyana continues to attract strong inflows because of the many opportunities created by its booming economy. However, he noted concerns about non-Guyanese companies exploiting the country’s liberal foreign exchange system to buy U.S. dollars and transfer them overseas.
“We have non-Guyanese entities using our free-floating system to access foreign currency here and then taking it abroad to meet their own demands. That cannot continue,” he said.
Jagdeo pointed to recent measures announced by President Dr. Mohamed Irfaan Ali to tighten oversight, including requiring companies to submit invoices for large foreign exchange requests. “If you don’t have the invoice, you’re not going to get it,” he stressed, making clear that the rules target larger firms and not small businesses or individuals.
Citing examples of foreign-owned supermarkets operating without registering in the local tax system yet still accessing large sums of U.S. dollars, Jagdeo said the government must act to protect fairness and prevent abuse.
“We can’t allow that. This is about protecting our system and ensuring fairness,” he declared.
The vice president reaffirmed that the administration intends to preserve a free and accessible foreign exchange market while closing loopholes that threaten tax compliance and financial stability.
