The Central Bank has enough reserves to stabilize the foreign exchange market if necessary

– says Jagdeo

The government carefully controls the exchange rate to ensure a stable exchange rate and balance the value of Guyana’s currency to prevent excessive appreciation or depreciation.

According to People’s Progressive Party (PPP) General Secretary Dr. Bharrat Jagdeo, the rate has fluctuated between $212 and $222 in recent years, with adjustments made when Guyana’s central bank, the Bank of Guyana, introduces foreign currency into the market.

“But we believe that the minimum level of foreign exchange in an aggregate sense corresponds to demand in an aggregate sense, but (what) you have is a balkanized market. And we try to help with this from time to time,” he told reporters.

Dr. Jagdeo addressed the foreign exchange market leadership in response to questions posed by the media at his press conference on Wednesday at Freedom House in Georgetown.

The growth in economic activity, especially capital investment, is a key factor that has led to an increase in the demand for foreign exchange.

Jagdeo noted that these investments are real deals and are necessary to expand the economy.

Looking ahead, he noted that the Christmas season could boost demand as businesses stock up on goods and make payments.

However, the Bank of Guyana has the ability to intervene if there is significant demand.

“We have enough reserves to do this, but it should not happen when one person moves the system… But when we estimate that aggregate demand exceeds aggregate supply in the market; that is when there is a case for intervention,” he said, emphasizing the bank’s continued role in stabilizing the market if necessary. (DPI)