“Central Bank threatens cambios”

The People’s Progressive Party (PPP) has expressed alarm over what it says are reports that Central Bank has threatened cambio operators to be derisked by commercial banks unless they trade at specific rates. The Parliamentary opposition party, made it clear that the “abuses” by Central Bank, as the regulator, are a violation of the law, and that it would present the issue in the National Assembly.

The Central Bank had announced a number of measures including cambio operators not having more than a $3 spread between the buying and selling rates. A number of factors, including reduction of earnings from lower exports last year, saw Guyana falling short of the 2015 figures by over US$30M.

In addition, a number of neighbouring countries, facing a cash shortage of especially US dollars, have been trekking to Guyana to buy up. According to the PPP, the measures by Central Bank are of tremendous concern. The party said it viewed, as high handed and unconstitutional, the actions of Central Bank and Minister of Finance, Winston Jordan, in issuing instructions and directives to banks and cambio operators. “It must be noted that these cambios operate under specific laws and any attempt to force these cambios to buy or sell currency at specific rates is in violation of the law,” PPP said in a statement issued by Irfaan Ali, a senior Parliamentarian. It was pointed out that the country’s foreign currency market operates based on a floating exchange rate and is therefore determined and influenced by demand and supply. PPP also claimed that it received information that the Central Bank has threatened cambio operators to have them derisked by the commercial banks and to have their accounts closed if they do not sell currency at the specific rates stipulated by the Central Bank.

(kaieteurnewsonline)