Business operators in Guyana are increasingly frustrated by delays in accessing foreign currency from banks, with reports of requests taking up to three weeks to process.
Vice President Dr. Bharrat Jagdeo acknowledged the issue, stating that the government is closely monitoring the situation. He noted that delays can occur when multiple requests are made by individual companies. “A lot of the businessmen, when we look at the framework, we see multiple requests. They’ll go to five banks and put in the same request at several banks,” he explained. Jagdeo highlighted that some groups, particularly those that are not Guyanese, may attempt to exploit the system, leading to leakages for goods intended for Trinidad.
While legitimate businesses with strong banking relationships can sometimes access funds within three weeks, Jagdeo pointed out that accessing currency in neighboring countries like Trinidad may take up to six months, even for small amounts. “If they have good relations with the banks, then they get resources. We have adequate funds to inject into the banking system,” he affirmed.
The Vice President also addressed the shortage of physical banknotes, which contributes to increased costs and delays. “There is a bigger shortage of notes, though, and that pushes up the cost price of notes, like the exchange rate for notes versus the bank drafts,” he said. He noted that illicit users are willing to pay more for physical cash, exacerbating the shortage.
Additionally, Jagdeo raised concerns about individuals taking large sums of cash out of the country, including to places like Panama. He emphasized that legitimate transactions should utilize the banking system rather than transporting physical cash, which strains the availability of currency. “They declare it, but they take it out in bundles. They should be using the banking system if it’s legitimate,” he stated.
Jagdeo reiterated the government’s commitment to ensuring that the formal banking system remains the primary channel for foreign currency transactions, emphasizing that measures are being implemented to curb abuses and leakages.
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