Georgetown, Guyana — President Irfaan Ali met with the heads of Guyana’s commercial banks yesterday to announce a sweeping set of measures aimed at curbing capital flight and tightening oversight of foreign exchange transactions. The move comes against the backdrop of a sharp rise in demand for U.S. dollars, fueled by increased imports, swelling card usage, and what officials describe as abusive invoicing practices.
In 2024, the Bank of Guyana injected approximately US$332 million into the financial system to meet currency demand. By late 2025, that figure had already climbed to US$1.2 billion, with unmet demand still on the table.
President Ali noted that credit card settlements for overseas purchases have skyrocketed, jumping from US$91.3 million in 2023 to US$347.5 million in 2024, and nearly US$252 million already in 2025, even before the year-end holiday season. Officials suspect that businesses are increasingly using personal credit cards to bypass banking channels, raising red flags about transparency and compliance.
The Nine New Measures
To address these pressures, the President unveiled nine measures to be implemented immediately:
- Invoice requirement: All foreign currency requests for imports must be backed by a commercial invoice before approval.
- Post-clearance verification: Importers must submit stamped invoices and bills of lading to both the Guyana Revenue Authority (GRA) and their bank.
- Conditional access: Failure to provide verified documents will block access to future tranches of foreign currency.
- Clearing house: A new verification “window” at the Bank of Guyana will reconcile records across the GRA, commercial banks, and the central bank.
- Card restrictions: Personal credit cards must not be used for business expenses. Banks will be held accountable for enforcement.
- Over-invoicing penalties: Companies inflating invoices or engaging in related-party transactions for capital flight will face sanctions.
- Cash declarations: Travelers taking foreign currency out of Guyana must declare the source, whether purchased at a bank or cambio.
- Local content accounts: Service providers in the oil and gas sector must open local bank accounts, with foreign currency earnings deposited into them.
- Single-window reconciliation: Before new requests are processed, the central bank will ensure invoices are not recycled across multiple banks.
Bankers Voice Support — with Caution
Representatives from Republic Bank, Scotiabank, Demerara Bank, and others broadly endorsed the initiative, citing overdue tightening and the benefits of transparency. Some, however, flagged practical issues. Bank officials raised concerns about possible delays if invoices and bills of lading are not processed quickly, and called for clear guidelines and a digital portal to standardize compliance.
They also pressed for clarification on the repatriation of dividends for foreign direct investors, warning that uncertainty could discourage investment.
Capital Flight Risks
The measures follow mounting evidence of capital flight through inflated invoices, duplicate submissions at multiple banks, and offshore settlement of property transactions. Officials worry that these practices drain reserves and distort the foreign exchange market at a time when Guyana’s oil-driven economy is booming, but still lacks deep, liquid capital markets.
The President emphasized that the government can meet current foreign currency needs but must “protect Guyana’s interests” against manipulation.
The government will circulate detailed operating procedures to banks within days and hold follow-up meetings before the end of the week to refine the rollout. Authorities also signaled plans to review foreign direct investment practices, warning that companies cannot rely on domestic FX pools or bank loans to finance capital equipment — funds must be brought in from abroad.
The new regime marks a turning point in Guyana’s management of foreign exchange, signaling tougher scrutiny on capital flows at a time when both domestic businesses and international investors are testing the system’s resilience.
