Opposition denies role in foreign currency shortage

Apr 12, 2017 News

Opposition Leader Bharrat Jagdeo has denied allegations to the effect that the shortage of United States dollars on the local market and consequent depreciation of the Guyana dollar was orchestrated by him and his Party to destabilize the government.
Jagdeo said that if that is the case, then it is to be understood that the People’s Progressive Party/ Civic (PPP/C) also colluded with the Inter-American Development Bank (IDB) to undermine the government.
“So did we tell the IDB to write that report too? Did we tell them to write that foreign remittances are down? Did we tell them to write that foreign direct investment is down? Did we tell them to write that proceeds are down from rice, bauxite and sugar?”
Jagdeo urged, “Look at the balance of payments number in (Minister of Finance Winston) Jordan’s Budget. If the supply to the market is down and the demand is still there then you are going to have depreciation of the currency.”
Jagdeo also noted that the IMF did a study where it found that the lack of coordination between the banks in setting a rate of exchange was another factor that led to the current situation, “The IMF did not state the PPP…This is the reality of the situation but the PPP gets blame for everything.”
Jagdeo also said that the government is to be blamed for its incompetence and its “harsh” measures. Jagdeo said that “this thing about going into people’s bank account, blocking them at the airport, these SARU raids will not do good. It will make people want to hold more foreign currency.”
The Opposition Leader said that there is a “thriving black market for currency exchange now.”
A few weeks back, the US to Guyana dollar exchange reached a record high. The exchange was $230 to US$1. Through interventions by the Bank of Guyana, the rate is now $215 to US$1in banks and cambios but Jagdeo said that the black market is making huge profits and the government is, as a result, losing revenue.

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