Businessmen complain of foreign currency shortage

Mar 27, 2025 News

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…say goods spoiling

Kaieteur News- The constant “unavailability of U.S currency” in Guyana is frustrating local  business people with those who import perishables complaining of losing millions. Frustrated, the businessmen are now calling on the government and local banking system to come clean and say “what is really going on with the availability of foreign currency in Guyana”.

The Central Bank has been injecting millions of US dollars into the local banking system in an attempt to stabilise what it called “a short-term mismatch” but according to the Guyanese businessmen, it has done nothing to alleviate what might likely be a shortage of foreign currency in the country.

Sourcing U.S dollars to pay for goods still remain a huge problem for local importers.

One of the businesses whose goods have been held-up for more than three weeks now due to the unavailability of foreign currency, Double ‘D’ trading and Distribution Limited, decided to go on the record, sharing the hardships it is facing.

The business imports perishables mainly onions and potatoes and according to its owner, (name provided), the company’s trouble to source foreign currency began last year November, just a few months after the government was forced to inject US$80M into the local banking system to address the same situation.

“My goods are spoiling on the port and I had to dump millions of dollars”, he said before later adding “The banking, the system and government must tell us what is going on moving forward. It is not good for investment”.

He even shared his private emails with Kaieteur News of his bank turning down his request to pay his supplier because it did not have U.S currency.

In one of the emails seen by Kaieteur News, the bank told Double ‘D’ Trading and Distribution Limited, “your payment requests were received; however, we were unable to proceed with the payment due to the unavailability of US currency, and unable to commit to a date on when payment will be processed. We are monitoring this situation and will expedite the payment as soon as funds become available. We do apologise for the inconvenience caused”.

The company tried opening accounts with other banks in the country to see if it can source some foreign currency but to no avail.

At least two of the banks refused to open new accounts for the businesses.

Kaieteur News understands that the banks are now refusing to open new business accounts because they are unable to source enough foreign currency to make transactions on behalf of clients they already have.

As Double ‘D’ continues its bid to source US dollars, the owner explained how it has been affecting business for the company and even customers who now have to pay a higher price for the goods it imports.

“If I tie a deal today with my supplier, we have to put 50 percent through to secure the item at the price that we bargain for” he said, while explaining that if the payment is not made in time, then the company will lose out on the deal and will now have to pay more for the same item.

“So if I say I need two containers or three containers of garlic, he (the Supplier) says 30 percent down. I will instruct the bank to pay on my behalf because I have local currency but the bank will only send through this payment three weeks after”, the businessman explained as he noted that sometimes weeks turn into months.

“So when I go back I pay a higher price for the goods and when the goods meet to Guyana I still have to wait for the 70 percent to deliver to supplier” he added.

The businessman continued “So the goods come at the port and the supplier cannot get his money so he is not going to release the container until he receives his payment”

“Now if he does not receive that payment and the container is on the port and I have 10 free days and within those ten days the bank does not gave me that foreign currency to pay for the goods then I have to pay for the storage, I have to pay cost and I have to pay demurrage which is 150 US dollars a day per container” the businessman further pointed.

According to him, He will have to recover his cost so in the end, it is the consumer who suffers the most because they now have to pay more for essential goods they need for food.

The business too, he said, also suffers losses when it has to dump spoiled goods it still has to pay for.

Meanwhile importers of non-perishables goods have risen their prices to recover the huge cost incurred due to the unavailability of foreign currency.

Kaieteur News was told that they are willing to sit and wait until the consumer pays the price because their goods won’t spoil.

Kaieteur News, a media company, has been finding it difficult too, to restock supplies due to the unavailability of foreign currency.

 

The last time businessmen were facing a similar situation was in June last year.

The Vice President, Bharrat Jagdeo at one of his press conferences had outlined, that escalating demand for foreign currency, driven by importation and other financial transactions, had caused prolonged waiting times and a significant disparity between supply and demand within the banking sector.

He had emphasized government’s vigilant oversight of the banking sector, underscoring its readiness to intervene when necessary.

(Businessmen complain of foreign currency shortage)

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