Govt. eyes Chinese, Trini. businesses for hoarding US dollars – Jagdeo

Jul 05, 2025 News

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…Norton says issue not the only factor to scarcity

Kaieteur News – The government of Guyana is paying close attention to the means through which Chinese and Trinidadian businesses purchase goods as the scarcity of the United States (US) dollar continues to be a challenge.

At his weekly press conference on Thursday, Vice President (VP) Bharrat Jagdeo said the hoarding of the US currency is contributing to the spike in the daily rate. He explained that many of the businesses do not want to utilize the banks and “that’s why we are checking if the Chinese are doing this… some of the Chinese supermarkets et cetera.”

“We’re checking how they’re paying for their goods because some may be through the purchase of gold and we’re examining that and some may be through the purchase of currency because they can’t come through the formal banking system. We’re watching carefully,” the vice president told reporters.

The VP revealed that the government is checking how the Chinese are paying for their goods, because in some instances they may be doing so through gold, while others may be through the purchase of currency, as they cannot go through the formal banking system.

“We’re watching carefully. So, we’re watching all of these things. Don’t think that we’re not watching what’s going on there and you’re going to see enforcement action against a lot of those people,” he warned.

The constant hike in the US Dollar has been an issue sparking public debates over the last few months with various theories presented to explain the phenomenon.

Meanwhile, asked if it was safe for the government to pump revenues or US dollars into the economy without oil revenues being present, or whether the oil revenues coming into the system stabilise the US dollar, Jagdeo said the government has a large capacity to intervene by selling foreign currency to the bank. He said the government is carefully managing this aspect of the economy as it does not want any leakages.

“It’s getting even worse now with Trinidadian companies, as things get tougher over there. I saw Prime Minister Ralph Gonsalves speaking about some of these issues and we have a problem with the currency not the instrument. So, the dollars are bit scarcer because we don’t sell too much dollars. We sell to the banks through transfers directly to the bank accounts et cetera,” he explained.

Jagdeo said the issue does not exist because of the lack of money, but that the currency is sometimes very scarce. He said when persons go to purchase US, they may not be able to get any at the time. On the other hand, some may buy the currency and hoard it for themselves.

“But we have an enormous capacity to intervene in this regard and it’s carefully calibrated enormous capacity,” he added.

On Friday, opposition leader Aubrey Norton was asked how he thinks the critical issue could be resolved.

“…we believe that with our approach to agriculture, there is going to be, a reduction in that. We also believe that you have to generate more activity in the non-oil sector so that the non-oil sector become an earner. Let us not forget that a lot of the resources that come from oil and gas will go back to covering the investment cost, among others, and so it is not a case as if it is flowing into the Guyana economy, and that is one of the reasons that I would have said regularly, the minute we come into government, I will engage ExxonMobil to ensure that Guyanese can benefit more from what exists,” the opposition leader said.

Seeking further clarity on his solution, Norton was pointed to the justification given by Vice President Jagdeo who said that some businesses are buying the currency and keeping it for themselves, including possibly Chinese businesses.

Norton was then asked “Do you agree that the way in which these persons are allegedly purchasing this currency is having an effect on the availability of other currencies within the market?”

In response, he said “It clearly does, but don’t forget, Jagdeo himself, when Granger came to power in 2015 told them not to spend. Keep it, hold it. So, it’s a culture that has developed, I believe, in terms of the Chinese and the Trinidadians in government, we will look at the details and act.”

Norton said while his party believes that foreign investors must operate based on rules, his party, when in government, will ensure that these rules are in place to reduce the ‘currency hoarding’.

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• hoard, Jagdeo, Purchase, spike, Trinidadian businesses, US dollars

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