Officials at Bank of Guyana (BoG) have lashed out at the Georgetown Chamber of Commerce and Industry (GCCI) which criticized its handling of foreign currency shortage. Central Bank in a statement said it does not exist to ensure foreign currency is available for the chamber’s members, adding that it operates in an open market.
See full statement from the financial regulator below.
The Bank of Guyana has taken note of a press release issued by the Georgetown Chamber of Commerce and Industry (GCCI) earlier today on the matter of availability of foreign currency.
The BoG is an independent central bank with a clear mandate defined by law and in keeping with international norms and standards for central banking. Its objectives include fostering domestic price stability through the promotion of stable credit and exchange conditions.
The law establishing the BoG also stipulates that the Guyana Dollar is a freely floating currency, traded in a market whose prices are determined by prevailing market conditions, that is to say demand and supply.
The GCCI appears to be of the mistaken impression that the BoG exists to ensure that foreign currency is available to their membership at the times that they demand and at prices that they demand. This is simply not how an open market economy operates, and is simply not how foreign currency availability and pricing are determined where floating currencies are concerned.
The GCCI’s energies would be better spent engaging either the banks or the bankers association, who are also members of the private sector, with a view to better understanding the factors that influence the availability and pricing of foreign currency in the domestic market.
The BoG remains committed to discharging its mandate and to engaging with the private sector on matters of concern to them in a mutually respectful manner.
