Gov’t to close loopholes in foreign currency market, abusers to face crackdown -Jagdeo

Vice President Bharrat Jagdeo has made it clear that while Guyana’s foreign exchange market remains stable, the Government is moving to clamp down on individuals and entities who are exploiting the system.

Speaking at his weekly press briefing, Jagdeo stated that there is significant evidence indicating that some foreign nationals, including individuals who are not genuine investors, have been accessing Guyana’s foreign exchange to meet demands in other countries.

“In countries where they have exchange control regimes and we have a free floating exchange regime, where people can buy and sell as much currency as they wish, some have been abusing that,” Jagdeo explained. “What the President announced was the intention of cracking down on those, particularly non-Guyanese investors, who are using our foreign currency market for demands outside.”

He stressed that the new measures announced by President Irfaan Ali must be seen in this context. Guyanese will not face restrictions on purchasing foreign currency, he assured, as the Central Bank will continue to provide an adequate supply to meet local demand. However, larger users of foreign exchange will now be subject to stricter requirements.

Jagdeo pointed out that while small businesses will benefit from exemptions, larger players will have to provide invoices to demonstrate that their foreign currency requests align with legitimate demand. “We believe it is siphoned off there and then sold to other people who are non-Guyanese to meet their demand elsewhere or to meet demand that is not captured by the GRA that is generated from these foreign entities in Guyana,” he said.

As an example, Jagdeo highlighted the operations of many Chinese-owned supermarkets. “Most of these supermarkets don’t have a bank account, their owners don’t have a bank account, and they’re importing a lot of goods to sell in their supermarkets. How are they getting their foreign currency?” he asked.

According to the Vice President, closing these loopholes will not only protect Guyana’s foreign exchange system but also allow the State to collect more taxes from foreign entities operating in the country. He also flagged cases where foreign exchange is being obtained in Guyana and used via credit cards to settle expenses in other countries.

Jagdeo emphasised that these measures should not be seen as a clampdown on local businesses or ordinary citizens. “The President made it clear, the system can clear, we have the capacity to intervene. We want to ensure it’s done in an orderly manner. There will be significant exemptions for small businesses—particularly local businesses,” he said.

The Vice President added that current laws regarding currency leaving the country remain unchanged, noting that only sums over US$10,000 must be declared, as has always been the case.

“There will be a greater focus on the foreign currency market,” he concluded, reiterating that the crackdown is aimed squarely at those abusing Guyana’s system, not legitimate domestic users.