Latest update April 8th, 2025 7:13 AM

Guyana's largest selling daily and New York's most popular weekly

Latest News

Central Bank’s high liquidity represents lack of investment opportunity

Mar 18, 2009 News


– Franklin
During the recent debate in the House on Colonial Life Insurance Company (CLICO) Guyana, Minister of Housing and Water, Irfaan Ali, lauded the government’s management of the financial sector and boasted of an exceedingly high liquidity level at the Bank of Guyana but this position was quickly debunked as nothing to shout about by Member of Parliament, Everall Franklin.
According to Franklin, while a safe level of liquidity was necessary to have an excessive amount just sitting in a bank, it was indicative of lack of investment opportunities.
He posited that cash sitting in a bank does nothing for a country given that it is not being invested in projects, upgrading business among others which would also allow the cash to benefit the country and increase revenue base given that interest would have to be paid to the bank as the money borrowed is returned.
Franklin posited also that apart from the excessive liquidity suggesting an unhealthy investment climate he posited that it could also mean that the cost attached to borrowing from the Central Bank was too much.
He noted that the cost of borrowing is not embedded only in the interest rate but also in the terms attached to the loan.
At the end of February, the total Capital and Liabilities at the Bank of Guyana stood at $158.5 billion.
Public deposits was $41.3 billion, bankers’ deposits $29.4 billion, deposits of International Financial Institutions and Central Banks $21.1 billion, with other deposits totaling $20.1 billion.
There was also some $32.6 billion in paper currency in circulation in Guyana while coins in circulation were $598,947,253.

Similar Articles

The Glenn Lall Show|| April, 7th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

West Indies Rugby announces Men’s & Women’s squads for 2025 Tropical 7s

West Indies Rugby announces Men’s & Women’s squads for 2025...

Apr 08, 2025

Tampa, Florida – April 2025 – West Indies Rugby has officially announced the selected Men’s and Women’s squads set to compete at the highly anticipated Tropical 7s Rugby Tournament,...
Read More
Region 6 Canje NA Jagans Memorial Windball Cricket tourney contested

Region 6 Canje NA Jagans Memorial Windball...

Apr 08, 2025

Jaikarran, Barnwell bat DCC to emphatic title win over GCC 

Jaikarran, Barnwell bat DCC to emphatic title win...

Apr 08, 2025

Carolina takes One Guyana 3×3 Quest title back to Puerto Rico

Carolina takes One Guyana 3×3 Quest title...

Apr 08, 2025

40 Guyanese certified following completion of GFF /Concacaf Match Commissioners Workshop

40 Guyanese certified following completion of GFF...

Apr 08, 2025

East Coast, G’Town lock up as part of today’s double-header

East Coast, G’Town lock up as part of...

Apr 08, 2025

Features/Columnists

  • AI machines at the gate

    Peeping Tom… Kaieteur News-The call center was once the second chance for the school-leaver who never got past CXC.... more

Publisher’s Note

Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.

Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]