Bank of Guyana Stops Buying $TT

[bluefete]

We really reach.



Bank of Guyana stops purchase of TT$

Sunday, December 11 2016

The Bank of Guyana has temporarily stopped the purchase of Trinidad and Tobago and Barbados dollars from local cambios to stabilise Guyana’s foreign currency situation, the country’s Central Bank Governor Dr Gobind Ganga has announced.

He has also warned commercial banks about the amounts of TT dollars they were buying.

The Stabroek News quoted Ganga as telling a press conference on Thursday that there was no chronic shortage of US dollars, but there was “a situation” that may have led to local businesses complaining about a shortage of foreign exchange.

Ganga said there was evidence that traders from Barbados, TT, and to a lesser extent Suriname, were buying large amounts of US dollars in Guyana. This was due, he said, to the economic situation in those countries.

Referring to comparative statistics, Ganga said the TT dollars in circulation in Guyana rose from $9.1 million in 2014 to $38 million to date. The Barbados dollars rose from $8 million in 2014 to $13 million presently.

Assuring that the Guyana economy was a “solid” one, Ganga said commercial banks were satisfy ing the local demand for foreign currency.

Nevertheless, they have been cautioned about the amounts of TT dollars they have been buying, he said.

“The commercial banks are dealing with this situation as we speak. Some of them will be bringing back some foreign currencies they had elsewhere to address some of the demand,” he said.

A lot of people would have gone to the commercial banks and to the cambios requesting foreign exchange for speculative purposes and it was easy to do so.

He also said Trinidad businesses were struggling to pay for goods such as sugar and rice from Guyana.

The Central Bank has asked commercial banks, Ganga said, “to always be careful otherwise we will end up like Trinidad, where Trinidad can’t pay GuySuCo (Guyana Sugar Corporation) for sugar bought over one month ago. It is just US$1 million.” A rice exporter, he said, is owed about US$670,000 from a Trinidadian importer.

“It is now reflecting in our system - their problem,” he said.

[urbandilema]

Nice read here..at least guyana preparing if there is a shortage but I'm not an economist but what does do to our economic relationship to guyana

[bluefete]

Well, Guyana comes just like T&T with the Venezuelans who buy up our $US.

If push comes to shove, Guyanese importers will have to insist on up front payments.

Maybe they will take a cheque in $Guyanese .

[urbandilema]

Well, Guyana comes just like T&T with the Venezuelans who buy up our $US.

If push comes to shove, Guyanese importers will have to insist on up front payments.

Maybe they will take a cheque in $Guyanese .

Hmm that sounds not good and BTW isn't the Guyanese currency is very low

[urbandilema]

Well, Guyana comes just like T&T with the Venezuelans who buy up our $US.

If push comes to shove, Guyanese importers will have to insist on up front payments.

Maybe they will take a cheque in $Guyanese .

Hmm that sounds not good and BTW isn't the Guyanese currency is very low

Well now saw it there the exchange rate is 0.03 to 1 ttd

[bluefete]

It is very low but it is still acceptable currency.

So the TT businessman will have to buy in $G from the TT banks.

[bluesclues]

I did say we need to re-target our financial policies to increase the value of the tt dollar instead of diluting it with inflationary and enucleation facilititative policies to attract investors didnt i? U cant have a marketing strategy that tries to target investors willing to invest in a falling stock. Investors dont want that. Rising stock attracts more and more investors. The pnm have this economic policies thing all wrong in their minds im telling you.

[bluefete]

What you are writing about the PNM cannot even begin to understand.

[Pinnock]

Lol@bluesclues....sorry no clue....ahahahaha. My advice, Google "the relationship between exchange rate vs interest rate." Take a read from a few of the articles that pops up, gain some knowledge and report back.

[bluesclues]

Lol@bluesclues....sorry no clue....ahahahaha. My advice, Google "the relationship between exchange rate vs interest rate." Take a read from a few of the articles that pops up, gain some knowledge and report back.

I have no clue but they still buying usd while the ttd gets the stinkeye.

I dont think is me need to google. U still looking at this 1-dimensionally. When u begin to assess the connecting parts and the effects thereof upon them.. report back.

[Dizzy28]

When I was growing up you used to always here people say "Trinidad go end up like Guyana" as a forewarning of doom. Now the Guyanese are warning their citizens against Guyana ending up like Trinidad!!!

The ironies!!

[desifemlove]

there should be some preferential rates considering all is CARICOM. screw WTO, it don't and shouldn't count anyhow, this should be a key area for regional integration.

[desifemlove]

guyana has every normal right to secure its own FOREX balance. but again, how come CARICOM don't have no provision for this? if we iz all in an alliance,then shouldn't this be part of it?

[desifemlove]

I did say we need to re-target our financial policies to increase the value of the tt dollar instead of diluting it with inflationary and enucleation facilititative policies to attract investors didnt i? U cant have a marketing strategy that tries to target investors willing to invest in a falling stock. Investors dont want that. Rising stock attracts more and more investors. The pnm have this economic policies thing all wrong in their minds im telling you.

investment ent that simple. many things lend to investment conditions, not just raw microeconomics....

high crime, lack of economic plan, current macro/fiscal issues, all play a part. only FDI T&T getting soon is starbucks, uber and sandals.

Raising the dollar? why? the current regime is OK, and raising it could stoke up inflation. more inflation means a higher interest rate.

The issue out of our problems is to not rely on fossil fuels. stock markets rise and fall all the time, and anything can trigger a rise or a fall. if T&T beats USA 5-0 in WC Qualifying, this could rise the index, sounds stupid i know, but it's been known to happen elsewhere.

[dude2014]

What you are writing about the PNM cannot even begin to understand.

I disagree. The shareholders of the PNM ie big business understand that well
Sadly the rank and file will continue to vote PNM til ah dead

[Miktay]

guyana has every normal right to secure its own FOREX balance. but again, how come CARICOM don't have no provision for this? if we iz all in an alliance,then shouldn't this be part of it?

CARICOM iz not a monetary union.

[Dizzy28]

guyana has every normal right to secure its own FOREX balance. but again, how come CARICOM don't have no provision for this? if we iz all in an alliance,then shouldn't this be part of it?

CARICOM iz not a monetary union.

Caricom has something like 10 currencies of varying value. Pretty hard to secure a forex balance when there isn't even a common currency nor common central bank in play.

[desifemlove]

guyana has every normal right to secure its own FOREX balance. but again, how come CARICOM don't have no provision for this? if we iz all in an alliance,then shouldn't this be part of it?

CARICOM iz not a monetary union.

nothing stopping them from having forex arrangements, or other economic ties. that's part of the whole point of CARICOM, not just talk about how to increase tourism or lessen drug trafficking.....

[Miktay]

guyana has every normal right to secure its own FOREX balance. but again, how come CARICOM don't have no provision for this? if we iz all in an alliance,then shouldn't this be part of it?

CARICOM iz not a monetary union.

nothing stopping them from having forex arrangements, or other economic ties. that's part of the whole point of CARICOM, not just talk about how to increase tourism or lessen drug trafficking.....

Caricom iza free trade zone. Unlike the EU there iz no equivalent of the ECB. Each country iz economically and politically sovereign. There's no mandate for economic, legislative, forex or emigrant harmonization. Every country more or less does their own thing.

At thiz stage of integration CARICOM iz more like the 1950s European Coal and Steel Community which preceded the EU.

[desifemlove]

CSME says otherwise, Rowley nor Kamla in her time could have stopped a Guyanese professional from coming here. But then since we're all integrated, this is something we can look into getting into

[Miktay]

CSME says otherwise, Rowley nor Kamla in her time could have stopped a Guyanese professional from coming here. But then since we're all integrated, this is something we can look into getting into

No. CSME iza proposal based onna development strategy.

It has not been actualized.

[desifemlove]

it is active. some countries have opted out, but T&T hasn't. the basic fact it exists undermines sovereignty. I agree it's not like the EU, but then there is some pooling of sovereignty, responsibilities and abilities.

[88sins]

Raising the dollar? why? the current regime is OK, and raising it could stoke up inflation. more inflation means a higher interest rate.

just to be clear, are you saying that, in your opinion, an increase in value of the TT$ would cause increases in inflation as well as higher interest rates?

[Miktay]

it is active. some countries have opted out, but T&T hasn't. the basic fact it exists undermines sovereignty. I agree it's not like the EU, but then there is some pooling of sovereignty, responsibilities and abilities.

I dont know where u get ur information frm DFL...but youre lost and wandering in the forests of the Northern Range.

[88sins]

more like done wandered into & out of the forest,& currently almost halfway to grenada

[Redman]

If the USD has been strong against most currencies as it has , why should TnT be immune to the general lack of USd availability globally.

We import everything
we getting less USD per unit of our main commodities this reduction in % terms is exponentially more than the % of economic contraction
We are a narco economy struggling to keep up with the laundering that is keeping up our economy.
Access to USD is not a god given right.not even in the USD
CBTT cannot defend the TTD. Not for long

we should have dollarized or floated against a basket years ago.
still should

[bluesclues]

If the USD has been strong against most currencies as it has , why should TnT be immune to the general lack of USd availability globally.

We import everything
we getting less USD per unit of our main commodities this reduction in % terms is exponentially more than the % of economic contraction
We are a narco economy struggling to keep up with the laundering that is keeping up our economy.
Access to USD is not a god given right.not even in the USD
CBTT cannot defend the TTD. Not for long

we should have dollarized or floated against a basket years ago.
still should

There is no shortage of usd. The problem is countries like ours who are mismanaging the economy and running the value of our currency into the ground.. CANNOT AFFORD.. to buy usd at the rates weve grown accustomed to. IT IS WE who have the shortage... of ttd!

Usa has no restriction on the purchase of it's dollars. It is a world reserve currency with the target of being used widely across the world. Any restrictions we face is a pnm engineered restriction. Like how they playing footsie with fatca. Like how they deliberately create contraction of the economy by starving and burdening cnsumers with exhorbitant taxes. This will of course create a slowdown in consumer activity. And again the question boils down to...

Would u as a businessman rather sell 2 items per day at $100 profit each, or sell 10 per day at $40 profit each.

[Redman]

Bluesclues says:

There is no shortage of usd. The problem is countries like ours who are mismanaging the economy and running the value of our currency into the ground.. CANNOT AFFORD.. to buy usd at the rates weve grown accustomed to. IT IS WE who have the shortage... of ttd!

At least you consistent in your accuracy

If the USD has been appreciating against most major currencies ....where would you store cash?
where would you prefer to denominate your holdings....
demand/supply.


http://www.businessinsider.com/dollar-d ... ld-2016-11


http://mumbaimirror.indiatimes.com/colu ... 031008.cms

This global flow of dollars back to USA is creating a sort of dollar shortage worldwide, making the dollar very expensive i.e. strong. Most other currencies have lost out, and may become weaker in 2017. The dollar index (which measures the strength of the US dollar against the major currencies of the world) is at a 14 year high. It looks like it will continue to go higher.

https://www.bloomberg.com/news/articles ... ast-resort

That's the prognosis from Credit Suisse AG Director of U.S. Economics Zoltan Pozsar, who contends that the U.S. central bank needs to take a much more activist approach to ensuring adequate availability of the world’s reserve currency in light of recent regulatory changes that have raised bank funding costs and constrained sources of dollar funding.

https://www.bloomberg.com/news/articles ... r-shortage

Trump's surprise win in the U.S. presidential elections has set the stage for an intensification of the dollar-funding crunch which has been plaguing markets and was most recently highlighted by the Bank for International Settlement's Hyun Song Shin and Economist Carmen Reinhart

Exacerbate:
to increase the severity, bitterness, or violence of (disease, ill feeling, etc.); aggravate.

Which means it exists arredy.

seeya pumkin

[Redman]

If the USD has been strong against most currencies as it has , why should TnT be immune to the general lack of USd availability globally.

We import everything
we getting less USD per unit of our main commodities this reduction in % terms is exponentially more than the % of economic contraction
We are a narco economy struggling to keep up with the laundering that is keeping up our economy.
Access to USD is not a god given right.not even in the USD
CBTT cannot defend the TTD. Not for long

we should have dollarized or floated against a basket years ago.
still should

There is no shortage of usd. The problem is countries like ours who are mismanaging the economy and running the value of our currency into the ground.. CANNOT AFFORD.. to buy usd at the rates weve grown accustomed to. IT IS WE who have the shortage... of ttd!

Usa has no restriction on the purchase of it's dollars. It is a world reserve currency with the target of being used widely across the world. Any restrictions we face is a pnm engineered restriction. Like how they playing footsie with fatca. Like how they deliberately create contraction of the economy by starving and burdening cnsumers with exhorbitant taxes. This will of course create a slowdown in consumer activity. And again the question boils down to...

Would u as a businessman rather sell 2 items per day at $100 profit each, or sell 10 per day at $40 profit each.

ROFL...

And all of these are goals of any government, and politically astute.
You sounded better when you talking about oil...

[desifemlove]

it is active. some countries have opted out, but T&T hasn't. the basic fact it exists undermines sovereignty. I agree it's not like the EU, but then there is some pooling of sovereignty, responsibilities and abilities.

I dont know where u get ur information frm DFL...but youre lost and wandering in the forests of the Northern Range.

do you know what national sovereignty is or means? if the T&T government cannot prevent a Bajan doctor from coming here, how is that sovereignty?