Guyana’s 2016 external position is stronger than in 2013 but decline in imports suggests economy slowing
Dear Editor, Public controversies over the availability of foreign currency in Guyana’s financial system, although infrequent, tend to be unhelpful to market participants and the public in general, since shortages hint at a depreciation of our local currency which, if protracted, generally leads to higher prices for imported goods. Rumours, unfounded or not, therefore, tend to rattle public confidence and trigger the hoarding of foreign currency.
The table below presents selected statistics on Guyana’s balance of payments for the period 2013 through 2016, along with figures on the net foreign assets of the banking system. The year 2013 was chosen as a reference point since this was the most recent year that could be considered to be relatively free of the negative influences and uncertainty of the political climate which unfolded from the presentation of the 2014 budget through to the change of government in 2015. Source: Budget 2017; Bank of Guyana.