Foreign currency issues not reflective of status of aggregate market

Vice President, Bharrat Jagdeo has shed light on the foreign currency matter, explaining that the responsibility of the Ministry of Finance and the central bank must be viewed at a macroeconomic level, and involves fostering price stability in keeping with international norms and standards.

The Vice President who was speaking during a recent press conference at the Arthur Chung Conference Centre explained that the central bank, “…has to ensure that the money supply, along with the fiscal policy are conducive to growth and, in the long run, [and] don’t cause us to suffer the dreaded Dutch disease, especially in light of the oil and gas proceeds flowing into the economy.”

He pointed out, given the free market structure of Guyana’s economy, the foreign currency availability and pricing fluctuate following the market conditions.

Referencing a statement issued by the Bank of Guyana (BoG), Jagdeo noted that there should be an engagement between Guyana’s commercial banks, the Georgetown Chamber of Commerce (GCCI), the Private Sector Commission, and the bankers’ association regarding foreign currency concerns.

He said that seasonal variations can see the appreciation of foreign currency rates coming to the detriment or benefit of select parties, explaining that, “We do have not one aggregate market, but every cambio in this country operates like a mini market within the aggregate market. So, one bank would have an abundance of supply, but maybe, some other bank may not have the same amount of currency at that same time.”

To combat this, Jagdeo suggested the establishment of an inter-bank market to facilitate sharing, adding that some banks practice foreign currency hoarding. “So, we have to now work at promoting greater exchanges. I was thinking that maybe we need a daily balance, reported to the central bank of currencies purchased and sold, and the daily balance at all the institutions and then the list of demand, and you will see in most cases that they are clear, but they exist at different institutions,” he stated.

This concept, Dr Jagdeo said, will be discussed further with the senior finance minister. He said, “The government has to ensure that aggregate demand and drop the racism…there is room for inclusion, providing that you work for the people…you can’t bully people and you can’t lie to people…. currently, we have an ineffective Opposition Leader… more often than not, he has a shallow understanding of crucial sectors,” he stressed.

Meanwhile, Minister of Parliamentary Affairs and Government, Gail Teixeira, who took aim at the APNU+AFC Coalition, recently. She said, “At a time when we are taking the trajectory of our country forward; when we are seeing transformation; when the government has given COVID relief; help in the hampers; flood relief; the removal of taxes; the purchase of vaccines for our people; the PPEs (Personal Protective Equipment)…drugs that were not there; the opening up of housing; and the fixing of roads and bridges. All of this is taking place and all you can do is drag it down to race. That is the only flag you have. The only flag you wave is race…you have stuck loyally to your history from 1954 and onwards - of divide and rule in Guyana. That is unfortunate. I don’t accept that the youth don’t know about these things. They are not obtuse…whether the PNC/ RIG/ APNU/ AFC comes to term with past and steps on the road to national unity, you will be found, if you don’t join, left alone….you have a choice.” Teixeira charged that the PPP/C will push forward with President Dr. Irfaan Ali’s announced One Guyana initiative, despite the naysayers in the Coalition camp. She said, “The attempt to weaken any embryonic efforts at building a One Guyana will not succeed…efforts at building a ‘One Guyana’- a ‘One Guyana’ for all of us as a people where we will work towards equitable distribution of goods and services; where we will work for the development of the regions of our country…that is our goal and if you don’t agree with it, I’m sorry. You’re lost.”

In February 2021, President Dr Irfaan Ali announced the establishment of a ‘One Guyana Commission’, which will be spearheaded by Prime Ministerr Mark Phillips.

Guyana will need 1,500 new healthcare workers in two years – Jagdeo

aggregate supply in the markets reach some equilibrium, given the objectives of the central bank and the Ministry of Finance.”

The GCCI recently raised concerns about a shortage in foreign currency, particularly USDs.

Following this, the BoG reiterated that the banking system, with an average monthly turnover over US$500 million, has an adequate supply of USDs to meet local demand. The institution added that there would be regular monitoring of the foreign currency position in Guyana to ensure there is no disruption nor the adverse impact on economic activities. The BoG reminded that its legislative mandate is to promote domestic price stability through the promotion of stable credit and exchange conditions.

In this regard, the Vice President noted that “We can’t be pandering every time the Georgetown Chamber of Commerce wants to issue a statement. We can’t be pandering to that. We have to look at the macroeconomic objective. So, when we have a firm view on the macroeconomic objectives and if we believe that there is a sustained shortage, we have the means to supply the market.”

Withthe construction of several new hospitals across Guyana, it is estimated that Guyana will need at least 1,500 new healthcare works, according to Vice President, Bharrat Jagdeo.

During a recent news conference, he said, “We probably need 1,500 to 2,000 healthcare professionals in two and a half years once these hospitals are completed.”

He added that as part of the improved delivery of health care services in Guyana, there is need for an electronic record management system for hospitals and assured the public that such a system will be implemented in the public health sector.

The government will be constructing world-class hospitals in Anna Regina, Region Two; De Kinderen, Region Three; Bath, Region Five; Number 75 Village, Region Six; and one at Diamond and another at Enmore in Region Four.

Each of the world-class hospitals will be 65,000 square feet and will be equipped with 75 hospital beds. When completed, patients will no longer have to travel to the Georgetown Public Hospital to receive medical care, but can be assured of quality care while in their own region.

Meanwhile, progress is also being made on the $12.4 billion state-of-the-art Pediatric and Maternal Hospital that will be constructed at Ogle, by Australian company – VAMED.

This forms part of the President Dr Mohamed Irfaan Ali-led government’s vision of creating a modern healthcare system for its citizens.

In Budget 2023, the government allocated $84.9 billion to catapult the health sector.

Guyana plans additional oil auction in 2024 to bolster expansion

(Bloomberg) Guyana is planning another auction of prospective oil-field leases next year as the world’s fastest-growing economy seeks to maintain the pace of development, Vice President Bharrat Jagdeo said.

The country’s first auction is expected to take place by the end of May after being delayed by a few weeks as the government finalizes contract terms and legislation that ensure it secures a larger share of proceeds, Jagdeo said in an interview in Houston on Monday. The country has ample drilling locations to justify a second sale next year, he said.

Guyana’s economy is undergoing a radical transformation after Exxon Mobil Corp.’s 2015 discovery of massive tranches of offshore oil. From producing no crude at all, the Exxon projects will likely push national output to more than a million barrels a day by 2027, more than OPEC members Algeria and Angola, according to the government. But with much of the developed world looking to pivot away from fossil fuels, Guyana wants to extract and sell its crude resources as swiftly as possible.

“We have a ton of decisions to make now so that we don’t slow down the pace of development” Jagdeo said on the sidelines of the CERAWeek by S&P Global conference.