Foreign currency trading grew in `99 - dollar depreciated 8.9% over last year Stabroek News January 26, 2000 The foreign currency market sold US$414.5 million in United States dollars, Pounds Sterling and Canadian dollars last year and bought US$423.6 million in these currencies. This compares with sales of US$388.8 million in 1998 and purchases of US$389 million, according to Ministry of Finance sources. The selling rate of the US dollar, moved from $166.91 = US$1 in December 1998, to $181.90 = US$1 at the end of last year, reflecting a depreciation of 8.9% for the period. The selling rate at the beginning of 1998 was $145.04 and that at last year end would reflect a depreciation of 25.4% over the two years. On the other hand, the buying rate moved from $162.49 = US$1 in December 1998 to $178.69 = US$1 at the end of last year, showing a 25.9% depreciation. The average transaction spread fluctuated during the two-year period but the averages for the two years show a drop in spreads last year. The commercial banks accounted for 88% of the total sales last year, a three per cent increase on the year before. The actual volume of sales was US$366.6 million compared with US$47.7 million by the non bank cambios. Commercial banks' purchases for the period was US$375 million compared with the non-bank cambios' sales of US$47.8 million. The non-bank cambios' purchases and sales which dropped by an average 13% in 1998, went down further by 7.9% last year. The commercial banks on the other hand, increased transactions in 1999 by 40% and 32% for purchases and sales respectively. In 1998 there were drops of 49% and 53% in these areas respectively. On the other hand, the total currency sales for 1999 were US$386 million, Pounds Sterling valued at US$16.9 million and Canadian dollars valued at US$11.4 million. Purchases were US$395 million, Pounds Sterling valued at US$17 million and Canadian dollars valued at US$11 million. The market was reported to be more stable last year with demand and supply determining the allocation process to a larger extent. The Bank of Guyana only intervened once, in January with an injection of US$15 million into the market. A © page from: Guyana: Land of Six Peoples