Dear Editor,
GHK Lall writes: “The dollar has appreciated/ revalued from 215:1 to 205/202:1. However, 205 cannot buy what 215 obtained; and what was 215 now costs over 250”.
GHKL is making a point about our dollar gaining strength but still cannot compensate for the inflationary prices sweeping the whole world.
I wish to make a separate point about the Guyana dollar. At 1USD =$205G, it is a “looney” currency. The comedian says, “try giving a Guyana dollar to the beggar, he’d throw it back in your face”.
It makes sense therefore to create a new Guyana dollar, set it at parity with the USD, namely 1USD = 1$G. And, now that Guyana has huge reserves (oil money sitting in US banks or SWF), we can expect the new Guyana dollar to appreciate in value against the USD.
In 5 years we can reasonably expect USD1 = $G 0.80. What is the meaning of this? Guyanese become richer through appreciation of their currency. You do nothing but you become wealthier via the purchasing power of your dollar. Can’t beat that.
Such a currency will do a lot to gain international recognition and respect for Guyana. And, much more.
Note
Brazil and Argentina to begin preparations for a common currency. (See yesterday’s SN). Also 19 EU countries plus 4 non-EU ones are now using a common currency: the Euro.
The grand idea is that an internationally accepted currency is good for international trade. Actually, I have advocated this idea on this platform that Guyana should consider adopting the USD as its national currency.
Yours faithfully,
Mike Persaud
