GEORGETOWN, Guyana, CMC – Vice President Bharrat Jagdeo has dismissed reports that Guyana is facing a foreign exchange crisis, saying that the recent increase in demand for US dollars is primarily linked to massive capital projects being executed in the oil-rich country.
Jagdeo, speaking at his weekly news conference, stated that Guyana’s reserves and inflows remain strong, and that companies are borrowing more from local banks to finance the procurement of equipment, temporarily increasing the demand for foreign currency.
“Once those projects are finished, the demand goes down,” he told reporters, adding that the savings will also come down when the landmark Gas-to-energy (GTE) projects come on stream, since Guyana will be able to produce its own energy and supply cooking gas locally, which will then decrease imports.
He said this will allow Guyana to “have more foreign currency coming in and less going out,” adding “that is why this talk about a crisis is nonsense”.
Earlier this week, the Guyana government unveiled a new plan aimed at stemming the outflow of US currency, which has nearly quadrupled over the past year to approximately US$1.2 billion.
A statement issued by the Office of the President, Dr. Irfaan Ali, stated that the new measures would require importers to provide their invoice, bill of lading, and Guyana Revenue Authority (GRA) compliance documentation to commercial banks before payments are released.
“The implementation of these nine Standard Operating Procedures (SOPs) is designed to tighten foreign exchange controls, improve transparency, and prevent abuse of the system, especially in the context of rising demand and capital flight,” the statement said.
The government is also mandating that commercial banks monitor credit card usage to ensure it is used for personal rather than business transactions. This is part of the broader concerns regarding foreign exchange outflows, which the government has noted have seen a sharp escalation.
In 2023, total credit card clearance stood at approximately US$91.3 million, surging to US$347.5 million the following year. The government stated that by 2025, the amount had already reached nearly US$252 million, indicating continued high-volume activity.
Providing statistics showing the Central Bank’s intervention in the foreign exchange market, the government stated that last year, US$332 million was allocated to meet foreign exchange demand, rising to US$1.2 billion so far this year, with an additional US$160 million still pending.
The government stated that an interagency Task Force, including technical support, was convened to review the increase in demand for foreign exchange comprehensively.
Jagdeo, during the news conference, also dismissed the idea of capital flight, stating that Guyana continues to experience strong inflows due to the numerous opportunities available in the economy.
At the same time, the Vice President raised concerns about abuses of the system by some non-Guyanese entities that are exploiting Guyana’s liberal exchange market to buy US dollars and funnel them abroad.
“We have non-Guyanese entities using our free-floating system to access foreign currency here and then taking it abroad to meet their own demands. That cannot continue,” he said, adding that’s why President Ali announced the nine measures to ensure companies submit invoices for large foreign currency transactions.
“If you don’t have the invoice, you’re not going to get it,” Jagdeo said, making it clear that “this will not apply to small businesses or individuals”.
He cited cases where some foreign-owned supermarkets operating in Guyana were not registered with the local tax system. Yet, they were using the banking system to access large sums of foreign currency.
“We can’t allow that. This is about protecting our system and ensuring fairness,” Jagdeo said, adding that the government is determined to keep the system free and accessible to legitimate businesses and individuals while cracking down on loopholes that undermine tax compliance and foreign exchange stability.
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