The Guyana dollar has eased off its high of $200 to one US dollar, an important psychological mark, although some banks are now selling the greenback at over $200.
According to an earlier Guyana Information Agency (GINA) press release, selling rates had for the first time touched the $200 margin while buying rates average around $196 to US$1.
Speaking with an official at Commerce House Cambio revealed that they "were never buying the dollar at $200". According to her, "the dollar has been stable at $196".
"The rate was $200 - US$1 early in the week, then it started to fall, the pound also fell this week," said Fazeel Razack of Swiss House Cambio. He believes that the reason for the fall in the sterling was that "the Bank of England raised its interest rates to curb excessive borrowing." He said, "once it [the pound] weakens against the dollar it dips over here.
"Around this time things are normally a bit slow, since, businessmen need US to buy goods," he added. He said to get US dollars in $5,000 - $10,000 quantities would "take a little while".
The two cambios have varying rates for the buying and selling of foreign exchange, respectively these are: Swiss House $197 - $199 and Commerce House $196 - $200. For the pound sterling the rates are $315 - $320 and $312 - $320.
However, the Bank of Guyana exchange rates for the US dollar have not been affected by the fluctuations on the foreign exchange market. The buying and selling rates respectively are $195 and $197. This rate is pretty much the same since late October. With regard to the pound, its buying and selling rates are $330 and $334, which is higher than the rates at the cambios or on the street.
The bank issued a statement through GINA yesterday to assure the public that the slight depreciation of the Guyana dollar against the US dollar was a seasonal variation. It said that this annual seasonal pressure usually occurs in the third quarter of the year, when the business community tries to stock up on foreign exchange for the Christmas holidays. Notably the seasonal pattern is approximately two weeks later than usual this year. The exchange rate is expected to appreciate as the local market is boosted by increased supply in the final quarter of the year, says GINA, complemented by returning Guyanese and the sale of sugar between November to December.
At the National Bank for Industry and Commerce (NBIC) the exchange rate for the US dollar is $199. The exchange rate for drafts is $202. In terms of the pound sterling the bank is buying at $275 and selling at $310 and rates for bank drafts are $320. Erica Jeffrey, the head of the Foreign Exchange division at NBIC said that obtaining US$20,000 would depend on whether they had it at the time as well as what was going on economically in the country.
Scotia Bank is selling US dollars at $201, while the sterling is being sold for $310 and $322 for a draft.
At Demerara Bank the dollar is being sold for $200 and as a draft for $203. The pound sterling is selling at $278 and for a draft $340.
Reports received from foreign exchange dealers on the streets reveal that the dollar seems solid at around $196 -$198 at the buying rate and selling for $198 - $200. Hashok Singh, an independent moneychanger, said, "to obtain certain large quantities I would have to deal with the cambio".
Colin Barker volunteered that on average street dealers like him were capable of supplying about US$500 - US$600 on demand. There are others like Eric Singh who says that though they may not have it there are people who can supply that quantity.