Despite an intervention by the Government and a commitment by commercial banks to address the difficulty businesses face in accessing foreign exchange, former President of the Georgetown Chamber of Commerce and Industry, Timothy Tucker said there has been no significant change.
Speaking with Stabroek News yesterday, Tucker who first raised the issue in February said as recent as last week he was informed that some banks were unable to facilitate foreign exchange transactions.
While not disclosing their names, he said that three major businesses visited Demerara Bank Limited and Republic Bank (Guyana) Limited and were unable to process their transactions.
“There is not much change. Fellow businesses are still having the problem at banks… [The currency] is not readily available at some banks,” he explained.
He noted that while there is a push for interbank transfer of foreign currency it is not being done regularly. According to him, the Guyana Bank for Trade and Industry (GBTI) recently assisted Republic Bank with a transaction.
Asked if he was still experiencing the issue, Tucker responded in the negative, pointing out that he now conducts his transactions at Scotiabank.
Tucker and other business owners in February had voiced their concern in relation to shortages of foreign currency at local banks. Businesses were placed on a waiting list for several days.
President Irfaan Ali two weeks ago said that his government is “not sitting” on the issue.
“We are not sitting on this issue, we understand that the demand for business and transactions is increasing so we are working on many different fronts right now to address this issue,” Ali said.
The President had taken a moment to speak on the matter during his address at the opening of a distribution facility commissioned by Suri Trading on the East Bank of Demerara.
Chairman of the Private Sector Commission, Paul Cheong who first touched on the issue during the ceremony said that they must work to eliminate obstacles in the interbank system.
He asserted that the problem is not a shortage but distribution of foreign currency among the banks. “We are working with the suppliers and bankers to ensure that there is more efficient distribution in the system,” Cheong stated.
In February, business operators complained bitterly of not having access to foreign currency to facilitate transactions.
In an effort to address the issue, the Guyana Association of Bankers Inc (GABI) through an invitation from the Private Sector Commission (PSC) met with the Bank of Guyana on March 6 to discuss the prevailing foreign exchange situation.
But while businessmen applied pressure, Vice President Bharrat Jagdeo was the first from the government to announce a daily reporting system for banks on their closing foreign exchange holdings.
Days later, the Bank of Guyana (BoG) issued a circular to bank cambios informing of its intention to crack down on shadowy transactions.
Bank cambios will now have to submit invoices against which foreign currency is sold to the Guyana Revenue Authority (GRA).
The updated guideline on bank cambio operations states that the “Bank of Guyana is taking a number of measures to address the current Foreign Exchange situation. One area of concern is the importation of goods which requires a valid import invoice as set out in Bank of Guyana Circular No.05/2017.
“The Bank is now requesting all bank cambios to submit invoices against which foreign currency is sold to the Commissioner General, Guyana Revenue Authority for the attention of the Head of the Customs Department”.
Well-placed sources say that it is felt that this guideline will expose shady operations that are accessing foreign exchange for other than the stated purpose. The updated guideline is part of interagency work between the BoG and the GRA and is also seen as enabling checks and balances.
While businessmen have complained about availability, BoG Governor, Gobind Ganga, has asserted that there is sufficient foreign currency within the banking system.
