The ties that bind

By Rawle Lucas On In Business |
LUCAS STOCK INDEX The LSI increased over four percent on trading of the stocks of four companies. Republic Bank Limited (RBL) recorded an increase of over 14 percent while Banks DIH (DIH) increased over four percent. While the stock of Caribbean Container Incorporated (CCI) showed no change, that of Demerara Distillers Limited (DDL) declined by more than three percent. As a result, the index exceeds the risk-free Treasuries due to mature in December 2011 by more than 11 percentage points.
LUCAS STOCK INDEX The LSI increased over four percent on trading of the stocks of four companies. Republic Bank Limited (RBL) recorded an increase of over 14 percent while Banks DIH (DIH) increased over four percent. While the stock of Caribbean Container Incorporated (CCI) showed no change, that of Demerara Distillers Limited (DDL) declined by more than three percent. As a result, the index exceeds the risk-free Treasuries due to mature in December 2011 by more than 11 percentage points.

Legal Jeopardy

One of the busiest market places in Guyana is the cambio, where foreign currency is bought and sold daily.  Currencies that change hands now in open and legitimate trade were once the subject of shadowy activity and legal jeopardy.  That changed when the PNC administration, now PNC/R, under the late President Desmond Hoyte, liberalized trade in foreign currency in 1989 and permitted the opening of the money houses that are known across Guyana as cambios. Despite the tight spaces and innocuous looking places in which some foreign currency transactions occur, today the cambios play a pivotal role in the proper and effective functioning of the Guyana economy.

Legacy

The service provided by the cambios is critical to trade and travel.  Not only do they give safe and orderly access to foreign currency, they help stabilize the exchange rate by removing the hidden hand of the black market.  The money that changes hands form part of the money supply.  Given the durability of this market and its configuration of cambios, the introduction of the system for currency trade could be regarded as one of the more valuable legacies of the PNC/R government.  That the current PPP/C administration kept this market