–Dr. Jagdeo says as gov’t pledges to crackdown on abuse of foreign currency
–assures that FOREX rules will not affect small, local businesses
GUYANA is in a strong position to meet the surging demand for foreign currency, Vice-President, Dr Bharrat Jagdeo has stated, while pledging that the government is also cracking down on the abuse of the system by non-citizens.
Speaking at a press conference on Thursday at the Arthur Chung Conference Centre (ACCC), Dr Jagdeo said: “There is no crisis in the foreign currency market.”
The VP said that although the government has injected US$1.2 billion into the market, thus far, the administration can inject significantly more funds because the government has the capacity to do so.
“That capacity will only grow in future years, given the large revenue that will flow to the Treasury from the NRF, and if you look at the projections for that revenue, it runs into billions of dollars into the future, and that is in foreign currency,” he explained.
The Vice President reassured Guyanese businesses that legitimate access will remain unhindered, especially as Guyana’s rapid expansion drives the unprecedented demand for foreign currency.
“We’re not going to restrict Guyanese from purchasing foreign currency. In fact, we will make sure that we provide adequate amounts from the Central Bank to meet domestic demand, but we’re going to try to close the loopholes on some of those who have been abusing the system,” he said.
Dr. Jagdeo further stated: “So, when you see the need to submit invoices now, it is not to make the system more onerous on Guyanese, because there will be significant exemptions for small people…If you go for your small business, you wouldn’t have to go through that rigid system of submitting all the invoices to show that the invoices match the demand.”
Earlier this week President Dr. Irfaan Ali announced a series of immediate policy measures to strengthen foreign exchange management and protect Guyana’s financial system, as the country faces unprecedented demand for U.S. dollars and a surge in credit card transactions.
Speaking during an engagement with the heads of commercial banks and regulatory agencies on Tuesday, President Ali revealed that credit card clearances alone had skyrocketed.
“In 2023, total credit card clearance was about US$91.3 million. In 2024, it was US$347.5 million. And to date [in 2025], it is almost US$252 million, and we don’t even have Christmas clearances yet. That growth is extraordinary,” President Ali disclosed.
He said the government must ensure that such financial trends do not compromise the country’s economic stability or create opportunities for capital flight.
THE NINE MEASURES
The President then outlined nine new policy measures that will be enforced with immediate effect.
Invoices Required for Forex Requests: Any request for foreign exchange at commercial banks must be accompanied by a copy of the commercial invoice.
Verification upon Arrival: Importers will be required to submit the invoice and bill of lading to the Guyana Revenue Authority (GRA) and their bank once goods arrive, to verify that items were indeed brought into Guyana.
Conditional Access to Future Forex: If customers fail to submit verified documents, their subsequent requests for foreign exchange will not be processed.
Central Bank Clearing Window: Commercial banks will submit invoices and bills of lading to the Bank of Guyana for further verification through a newly established single-window system.
Credit Card Restrictions: Personal credit cards must not be used to settle business obligations. “We don’t want somebody settling a US$600,000 vehicle purchase for their company with a credit card,” Ali stressed.
Penalties for Inflated Invoicing and Capital Flight: Entities involved in over-invoicing, property transactions, or related-party transfers designed to move capital offshore will face penalties.
Declaration of Currency Sources: Persons leaving Guyana with foreign currency must declare the source, whether from banks or cambios, to enhance transparency.
Local Bank Accounts for Oil & Gas Companies: All entities registered under the Local Content Law must maintain a local bank account into which foreign currency earnings are remitted. “Local content legislation will be amended to reflect this,” Ali confirmed.
Central Bank Clearinghouse: A single-window post-clearing system will reconcile transactions among the GRA, commercial banks, and the Bank of Guyana before new forex requests are facilitated.
The President said that the Central Bank and GRA will coordinate closely with commercial banks to ensure compliance and identify breaches.
