This essay is an extension of the previous one on September 10: ‘Balances due from abroad and the foreign exchange “shortage”’, which argues that there has been a precipitous decline in the availability of the liquid stock of foreign exchange available to the non-bank private sector, although the aggregate level of foreign exchange is on the rise.
On August 19, the Stabroek News reported that the government is willing to make necessary interventions in the foreign exchange (FX) market in order to enable the smooth access to hard currencies.
According to the last count, there are seven countries that have jettisoned their national currency and adopted the American dollar as their legal tender.
The previous column discussed several important international functions the dollar performs.
The topic of de-dollarization is all over the popular press these days.
It is nice to see that the Guyana Stock Exchange (GSE) has a new and improved website.
Recent discussions surrounding the cost recovery provision in the oil contract and the possible renegotiation served as motivation for this column.
Recently Vice President Jagdeo proposed the government’s plan to provide part-time employment to thousands of Guyanese.
The build-own-operate-transfer (BOOT) financial arrangement has been used around the world to fund important infrastructure in partnership between government and private investors.
Today’s column will simulate two scenarios of expected money inflows into and outflows from the Natural Resource Fund.
Last week’s column (‘Macroeconomic issues relating to the NRF’) made the point that there are many similarities between the Act of 2019 and 2021, but it is the withdrawal rule which separates the two Acts in a major way.
In the previous column, I noted several positive features of the Natural Resource Fund (NRF) Act of 2021.
By Tarron Khemraj The Natural Resource Fund Act of December 2021 is a clear and concise document outlining the purpose of the Fund, as well as the sources of oil revenue deposit and method of withdrawal.
The previous column on October 31 (`Bank profit and interest rate: the Brassington thesis’) noted that fee incomes comprise the third largest source of income for the overall commercial banking sector in Guyana.
This column is the third in a series of essays exploring various aspects of the Guyanese financial system.
The previous column discussed several important roles of banks in a society.
The commercial banks have been coming under pressure from the business community for not taking on more risk by extending credit to small- and medium-scale businesses, as well as start-ups.
Typically, economists do not have the luxury of conducting lab-based experiments as in the natural sciences.
Observing the way in which the APNU+AFC and the PPP/C approach several key policies indicates an emerging political dichotomy in Guyana.
Vice President Jagdeo recently added some clarity regarding the long-term vision of the PPP/C administration.
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