Amid growing complaints from businesspersons that they are unable to access foreign exchange from the banking system, the bankers’ association yesterday said that it and its members are committed to working with all stakeholders to ensure efficiency and stability in the market.
The Guyana Association of Bankers Inc (GABI) through an invitation from the Private Sector Commission (PSC) met with the Bank of Guyana on Monday to discuss the prevailing foreign exchange situation.
GABI said that a number of issues were identified and all parties agreed to work constructively to resolve them.
“GABI and its members are committed to collaborating with all stakeholders to ensure that every aspect of the financial industry, including the foreign exchange market, remains stable and efficient”, the statement said.
The bankers’ association offered no information on the concerns of some businesspersons that when they approach banks they are told point-blank that foreign currency was not available.
Coming out of the meeting on Monday, the PSC said in its own statement that day that it was agreed that there is no overall shortage of foreign currency in Guyana despite there being a shortage at some banks. Nonetheless, the Commission committed to working with GABI and BoG to address the issues raised and promised to collaborate and work together for the benefit of all concerned.
It was stated that the aggregate supply of foreign exchange is meeting the aggregate demand and therefore the market remains in equilibrium.
“The Governor of the Bank confirmed that while there is an intra-bank market which enables banks to share, the Central Bank must rely on moral persuasion in an effort to achieve a more efficient distribution of foreign currency availability, while emphasizing the fact that it is the responsibility of the Central Bank to ensure that the Government meets its macro-economic objectives,” the PSC statement said.
Recently, several businesspersons have complained of experiencing a shortage of foreign currency at local banks and the Georgetown Chamber of Commerce & Industry (GCCI) called out the central bank for not monitoring the system.
The GCCI had stated that it was dissatisfied with the BoG’s lack of action, vision, and modern financial policies to improve access to financing for local businesses. It added that the country’s economy was one of the fastest-growing in the world, with oil revenues generating hundreds of millions of US dollars annually.
The BoG in response however, reprimanded the GCCI for labouring under the mistaken impression that the central bank existed to ensure that foreign currency was available to its members at the times and prices they demanded.
