Foreign exchange shortages will persist in Guyana

Significance

These difficulties have arisen despite the sharp rise in oil output to nearly 143 million barrels last year, from which the government received some USD1.6bn in revenues. Oil exports and royalties are expected to rise this year to around USD2.4bn. Nevertheless, complaints of delays in accessing foreign exchange persist.

Impacts

• The significant presence of major Trinidadian companies in Guyana will continue to put pressure on foreign currency availability.
• Rising imports of goods and services, fuelled by the oil boom, will drive demand for US dollars.
• Purchases by the central bank risk becoming a further drain on the foreign currency available.