Trinidadian, Chinese businesses facing scrutiny for foreign exchange shortage, gold smuggling

Last Updated on Friday, 4 July 2025, 13:21 by Writer

As the shortage of United States (US) dollars continues, Vice President Bharrat Jagdeo on Thursday said government was turning its attention to Trinidadian and Chinese businesses as suspected sources of the problem in the foreign exchange market.

“The banks know, who they are selling money to and in the request for purchase of resources from the bank, we do not see a number of companies that are doing business here – Trinidadian, Chinese especially – they are not on that list,” he told a news conference. Mr Jagdeo said that means that large importers that might be in the formal system were importing supplies and selling to other business.

Another suspicion, he said, was the illegal trade in gold. “We’ve heard people are buying gold and exporting,” he said, recalling that members of a “Chinese ring” had been charged.

Mr Jagdeo said authorities were also working on the theory that they were buying foreign currency “at a premium” on the open market to pay for supplies. “All of this is being examined by both GRA (Guyana Revenue Authority) and the security services so we have to examine all of this, not because we are targeting anyone but because our duty is to ensure that the resources in our financial system, in Guyana, are being used for legitimate purposes and to support Guyanese growth and Guyanese businesses mainly,” he added.

The US dollar was this week trading at cambios for GYD$220 (buying) and GY$223 (selling), while the commercial bank rate on notes ranged from GY$200 (buying) to GY$216.25 (selling). Though the Bank of Guyana has twice intervened in the forex market in this year, s far, there continues to be a shortage of US dollars with one regional bank operating here recently having a waiting list totalling US$90 million.

Mr Jagdeo said government also suspected that a number of Chinese businesses were allegedly involved in gold smuggling.

Mr Jagdeo, former finance minister, said the increased scrutiny of businesses owned by Asians was aimed at ensuring that the foreign exchange was being used for legitimate businesses and support Guyanese demand for goods and services, and investment purposes.