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Crackdown on unlicensed dealers in foreign currency… Central Bank has a responsibility to enforce the law -Finance Minister
Finance Minister, Winston Jordan
The political opposition has been extremely critical of the recent crackdown by the Central Bank on unlicensed dealers engaging in foreign currency transactions. But the government insists that Bank of Guyana has its job to do in upholding the law.
Specifically commenting on this matter yesterday was Finance Minister, Winston Jordan. The economist said that the Bank has a responsibility to enforce the legislation, however weak or strong it is. He noted that the Bank has put several persons on notice and called for there to be adherence to the laws.
In an advertisement a few days ago, Bank of Guyana, which is the regulator of commercial financial institutions and Cambios licensed to trade in foreign currencies, said it has received credible information of use of foreign currency by unlicensed entities.
“The Bank of Guyana notes with concern that some businesses are accepting foreign currency for the purpose of settling payments for transactions – instead of Guyana dollars.”
While Central Bank Governor, Dr. Gobind Ganga, would not immediately go into details during a recent interview on the matter, Kaieteur News has learnt from Government officials that authorities have been paying close attention to the Cuban traders in Guyana.
With Chinese retailers and wholesalers in recent years growing in number, especially along Regent and Robb Streets, Cubans, especially, have been coming here with the precious US dollars.
It is believed that upwards of US$2M alone in trade is being done with the Chinese stores each month. This does not include transportation to and from the Cheddi Jagan International Airport and accommodation.
About 1,000 Cubans are said to be coming monthly, shopping accessories, clothing and other things. There have been complaints that the Cubans, unwilling to visit a Cambio or bank because of safety concerns, would hand over their US cash to the willing store owners. It is believed that a significant part of the monies make it out of country, outside the normal channels, knowledgeable banking sources admitted.
However, Dr. Ganga stressed that he is not saying that it is only the Chinese stores that are involved. “We know lots of businesses are doing it. We are saying to you; please abide by the rules and regulations. We do have the mechanisms of surprise raids.”
According to the notice by Bank of Guyana on July 20 last, pursuant to Section 20 of the Bank of Guyana Act 1998, all monetary obligations or transactions in Guyana have to be settled in Guyana dollars.
“The Bank advises that only banks and licensed Cambios are authorized to conduct buying and selling in foreign currency. The Bank of Guyana Act 1998, and dealers in Foreign Currency (Licensing) Act 1989 provide penalties for violations, which include fines and imprisonment.”
The Bank warns that any person caught contravening the Bank of Guyana Act 1998 and the Dealers in Foreign Currency (Licensing) Act 1989 will be prosecuted.
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