Corner shop cambios surfacing

Mar 25, 2017 News

As concerns grow about the devaluation of the Guyana dollar and the parallel increase in the rates of foreign currency, shops are now ‘popping’ up offering to buy currency without the necessary authorization from the

Store owner smiles with the sign prominently displayed alongside him.

government.
Yesterday a Chinese clothing store on King Street, was buying US currency for $215; there were no visible signs that indicated that the establishment was an authorized agent to conduct such business.
The notice of the buying of foreign currency was carefully secluded inside the store at the cashier counter. When an explanation was sought from the shop owner as to whether he had the necessary documentation to do such a business, the Chinese national could not say. He claimed language created a barrier.
What the man did say was that “There is problem we buying”. The businessman seemed unconcerned about the attention he was receiving for his new business venture.
At a recent press conference Opposition Leader Bharrat Jagdeo warned that there will be a re-emergence of the America Street style trading; where persons will turn away from banks and cambios and seek better rates on the black-market.
Jagdeo told the media that the government’s denial of the “fact” that there is a foreign currency shortage is proof alone that “these people don’t know what they are doing.” The Opposition Leader said that a simple comparison of the balance of payment figures published by the government will show a reduction in foreign currency inflows from most sectors.
Jagdeo continued, “This government will harm all of our futures…It’s either they are unconcerned or incapable of addressing the problem the way it should be addressed.”
Jagdeo said that the urge to hoard foreign currency is picking up because of an expectation that the rate is climbing.
He added that the statement that the GYD$230 rate of exchange is only for credit card transactions is nonsensical. “It is almost criminal to say that that is the case because the reality is different and everyone who has gone to buy some currency knows this is the case, except the Ministry of Finance.”
The politician added that cambio owners will try to cheat the system. “They themselves will post one rate on the receipt but take more…This simply causes the government to lose taxes…This full-fledged panic approach will not work; a parallel market will develop.”
Jagdeo said that the possibility exists that the market may have cleared at $210 or $230 but the “panic actions will make it climb further. The projections are unbelievable $250, $300. They are driving the market into a full-fledged panic and you will see the reemergence of a black-market. It will affect everything else.”
Yesterday Minister of Finance Winston Jordan insisted that there wasn’t a foreign currency shortage and the rates remain at GYD$212-215 and that the government is closely monitoring the situation.