Latest update April 17th, 2025 9:50 AM
Bank of Guyana report shows…Increased foreign exchange transactions in 2014
The recently released 2014 report of the Bank of Guyana (BOG) has shown that the year registered an increased volume of exchange transactions, taking the total up to US$6.6B.
The 152-page report takes an in-depth look into Guyana’s economy and makes comparisons on the economy’s growth over the years.
Guyana dollars
According to the 2014 report, the total volume of foreign exchange transactions increased by 4.6% or US$292.8M from 2013 and amounted to US$6,672M (US$6.6B). In 2013, the country had recorded a total of US$6,379.2M (US$6.3B). Purchases and sales in the market were US$3,314.8M (US$3.31B) and US$3,357.2M (US$3.3B) respectively.
The report further showed that the market was particularly impacted by increases in foreign currency accounts balances and hard currency transactions segments. The Guyana dollar was depreciated against the United States dollar by 0.12%, taking it to G$206.50 due to relatively higher net sales. This depreciation in the weighted mid-rate reportedly occurred at the end of 2014. Based on the rates of the three largest commercial banks’ turnover, the unweighted mid-rate depreciated by 0.24% to G$205.25.
US dollars
Meanwhile, the average buying and selling rates for commercial banks cambios were higher during the reviewed period, the bank’s report showed. The average buying rate increased to G$206.97 from G$203.97 while the average selling rate moved to G$210.03 from G$206.79.
For the non-bank cambios, the rates were also higher; there, the average buying and selling rates increased to G$205.12 and G$209.32 from G$201.39 and G$205.60 respectively in 2013.
“In the cambio market, foreign currency transactions were mainly in the United States dollar, which accounted for 93.9 percent of the total trades. The Canadian dollar, Pound Sterling and Euro market shares were 1.8 percent, 2.2 percent, and 2.1 percent respectively,” the report said.
Pounds
Furthermore, the licensed cambios, which accounted for 54.8 percent of the total volumes, recorded a 5.7 percent decrease in turnover to US$3,018.2M (US$3B). For the six bank cambios, the combined transactions reported were US$2,795.5 million (US$2.79B). This indicated a decline in activities of US$309.3 million or 9.9 percent compared with 2013, the bank said. The bank cambios accounted for 92.6 percent of cambio turnover and 41.9 percent of the total market volume. Interbank transactions totalled US$70.7M in 2014, an increase of US$46.0 million or 186% compared with US$24.7M for the preceding year.
For the 12 non-bank cambios, transactions amounted to US$222.7M, an increase of 135% or US$128M. In 2014, the Bank of Guyana reported that it sold US0.3M to non-bank cambio dealers compared to 2013’s US$0.65M. The Bank also sold US$3.4M to commercial banks, representing a decline of US$159.6M or 98%. The Bank’s share of all transactions reduced slightly to 17.9% as against 2013.
Over the past five years, the Bank of Guyana recorded increase in its total foreign currency transactions except for in 2013 when the total declined by 5.8%.
In 2010, the total transaction had been approximately US$5.1B and this total increased in 2011 to $US6B. Further increases were seen in 2012 when the figure moved to $6.7B. It dropped in 2013 to $6.4B before increasing once more last year to approximately $US6.7B.
Meanwhile, the Bank of Guyana expects the exchange rate of the Guyana dollar to the US dollar will stabilise. The bank opined that this stabilisation may be due to reduction in oil prices. Foreign exchange flows to the market are also expected to adequately cover imports and support a stable exchange rate.
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