THE Bank of Guyana (BoG) on Thursday injected US$35 million into the banking system, People’s Progressive Party (PPP) General Secretary, Bharrat Jagdeo disclosed.
Jagdeo told reporters this during his weekly press conference at Freedom House.
He said: “We only address mismatch between flow of currency and demand for currency. The timing to smooth out flows, we intervene…like today, the Central Bank intervened and put US$35M into the banking system.”
The General Secretary explained the intricacies of addressing the flow and demand for currency.
He stated: “If you put too much money in at once, you cause an appreciation of the currency, and that could ultimately lead to the Dutch Disease; it is bad for agriculture, and bad for manufacturing.”
Last year, in response to challenges with accessing foreign currency in the local market, the Bank of Guyana undertook decisive action following discussions with commercial banks.
At a previous press conference, Jagdeo outlined that escalating demand for foreign currency, driven by importation and other financial transactions, had caused prolonged waiting times, and a significant disparity between supply and demand within the banking sector.
He emphasised the government’s vigilant oversight of the banking sector, underscoring its readiness to intervene when necessary.
Notably, Guyana’s import expenditure for 2024 has surpassed $5 billion, with a significant portion originating from the United States.
In the latest exchange rate update provided by the Central Bank, the buying price for the USD stands at $207.98, with a selling price of $210.45.
Additionally, the buying and selling prices for the Canadian dollar are listed at $152 and $152.76, respectively. The EURO’s exchange rate is reportedly at a buying price of $225.89 and a selling price of $228.79.
