By Saskia Warrick, November 1, 2024
The Government of Guyana is closely monitoring the foreign exchange market and is prepared to intervene if necessary to stabilize the market.
Vice President and PPP General Secretary, Dr. Bharrat Jagdeo, reassured the public that the country’s foreign reserves are sufficiently robust to handle any potential market disturbances.
Dr. Jagdeo addressed concerns about fluctuations in the exchange rate, particularly driven by phenomena such as the “Dutch Disease.”
This occurs when a sudden resource-driven economic boom leads to the overvaluation of the national currency, making other sectors of the economy less competitive.
He stated that the government is vigilant in monitoring foreign currency flows to ensure they align with the country’s aggregate demand.
The Vice President also highlighted external pressures on the foreign exchange market, such as Trinidadian companies purchasing goods directly from Guyana.
These transactions are occurring due to exchange control constraints in Trinidad, adding additional complexity to the market.
With the holiday season approaching and procurement activity ramping up, the government is ready to adjust measures to prevent excessive currency volatility.
Dr. Jagdeo emphasized the administration’s commitment to keeping the market balanced and stable in light of these seasonal demands.
Guyana’s government remains proactive in its efforts to manage the foreign exchange market and maintain economic stability, preparing to intervene if the need arises.