President Irfaan Ali has announced a raft of measures that are intended to monitor the country’s foreign currency as well as credit card spending.

The Government is seeking to better understand the main drivers of the increase in demand for foreign currency here in Guyana.

During a meeting with Executives of local Commercial Banks at State House on Tuesday, the President said in 2024 alone, the Government had to inject some US$334m in the local market to clear the foreign currency demand, with than demand rising to US$1.2 Billion this year, with an additional US$160m still pending.

The President also noted a sharp escalation in credit card usage as part of his broader concerns about foreign exchange outflows.

In 2023, the total credit card clearance stood at approximately US$91.3 million. That figure ballooned to US$347.5 million in 2024.

The President said a team is now examining that growth, to see whether personal credit cards are are being used to clear business transactions and the volume of those transactions.

At the meeting with the bankers, the President announced several measures that are intended to tighten the system.

“Any request for forex by any customer to commercial banks for the importation of goods to Guyana would require the customer to provide the commercial bank with a copy of the commercial invoice on the basis of which the commercial bank may release the foreign exchange to the said customer,” the President noted.  

In addition, customers who submit a request for foreign exchange upon the arrival of the goods in Guyana, will now have to submit a copy of the invoice and bill of lading to the Guyana Revenue Authority. The documents will also have to be submitted to the banks for verification.

The President explained that if a customer fails to submit the certified copy of the invoice and bill of lading, as well as a GRA compliance to the commercial bank, the bank shall not release the request for the foreign exchange.

“The commercial banks will submit copies of the Bill of Laden and the commercial invoice to the Bank of Guyana for further verification. So that is the window that we are setting up at the Bank of Guyana so that the clearing house is there so that your records and the Bank of Guyana records and the GRA records, everything will reconcile, so that we are all on the same playing field,” the President said.

As it relates to Credit Card usage, the President said each commercial bank will have to ensure that personal credit cards are used strictly for personal transactions and not for the settling of business obligations.

“In cases where there are related party transactions and inflated invoicing for capital flights the entities found responsible will be penalized,” the President noted.

Further, in cases where foreign exchange in the form of currency is being taken out of Guyana, the source of the currency will have to be declared.

The President also announced that entities registered in Guyana under the local content laws that are providing services for the oil and gas sector must maintain a local bank account in which the foreign currency earnings shall be remitted into the said bank account. The local content legislation will be amended to reflect this new standard, the President said.

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