The Private Sector Commis-sion is taking strong note of foreign currency limitations and the fluctuating value of the Guyana dollar.
“There has been some concern, but that is expected given the fall in gold and sugar prices. Once you have a drop in commodity prices there is going to be pressure on the currency,” Chairman of the Private Sector Commis-sion Ronald Webster told Stabroek News in an invited comment yesterday.
Businessmen had expressed concerns over the past few weeks that they had to pay $209 for US$1 to facilitate their business. “They telling you that foreign currency deh but which? It’s the US that most business people use and girl let me tell you it nah deh. We don’t know if they holding back on it or what but when you get you have to pay whole $208, one day was $210,” a popular Regent Street businessman told Stabroek News.
Minister of Trade and Industry Irfaan Ali when asked about this directed questions to Finance Minister Dr Ashni Singh. However, when contacted Singh said he was at a meeting and would accommodate this newspaper on the issue later in the week.
Webster pointed out that the dollar value is influenced by several factors since once there is a drop in foreign export the dollar also plummets. He pointed to global sugar price trends saying that as the price for sugar decreases, Guyana stands to be affected. “There is local pressure because if you look at the falling price of sugar and gold, both of which are key to Guyana, it influences our economy. On the other side you have rising price for soya and it shows that we need to look at product diversity,” he said.
He said another factor should be low cost energy as this was integral especially to local manufacturer. He opined that a project for alternative energy, such as the Amaila Falls hydro project, was needed soonest or the dollar will be devalued.
Checks made at the Bank of Guyana revealed that the US dollar was being bought for $205.47 and sold at $207.93. At city cambios the US dollar was being bought at between $200 and $204 and sold at between $204 and $208. The cambios’ representatives said they had not noticed a scarcity in the dollar and persons who wanted to purchase any amount were able to do so, but most persons were alarmed at the fluctuating rates. “If it’s very large amounts we ask that they give us notice. What we have found is that not that the supply is more than the demand it’s just that the business community feels pressured buying at high rates you know $206, $207, $208,” a cambio dealer said.
