The Private Sector Commission (PSC) today said it read with consternation the pronouncements of the Minister of State, Joseph Harmon as these relate to the introduction of stricter regulations and closer monitoring of the foreign exchange market in Guyana.
In a press release, the PSC said that it strongly condemns this move by the Government which would have the certain effect of accelerating capital flight which it said has already begun with the erosion of confidence in the economy.
Harmon told a post-Cabinet briefing yesterday that commercial banks and non-bank cambios will be subjected to much closer scrutiny by the Bank of Guyana as government strives to address unease over the availability of foreign currency.
Harmon said that one of the first to feel the effects of the stricter regulations will be an unnamed overseas-based company, operating locally, which has remitted more than US$100M to its foreign accounts.
“The Private Sector Commission also warns against the stated intention of Government to introduce restrictions preventing the unfettered repatriation of earnings of foreign companies operating in Guyana. Foreign direct investment in the economy has already slowed and a policy which prevents the repatriation of the earnings of these companies has the potential to move the influx of investment from a trickle to a halt.
“The Private Sector Commission wishes to remind Government that the country has gone down this path before with disastrous consequences to the economy. The Guyana economy can ill afford the certain deleterious effects of history repeating itself”, the PSC said.
