Local Businesses Struggle with U.S. Dollar Shortage, Call for Transparency

Local business owners in Guyana are growing increasingly frustrated with the persistent shortage of U.S. currency, which has caused severe disruptions, particularly for importers of perishable goods.

Many businesses report losing millions of dollars, with perishables like onions and potatoes spoiling on the docks due to their inability to source the necessary foreign currency. Now, these business owners are demanding answers from the government and local banks about the ongoing issue.

Despite the Central Bank injecting millions of U.S. dollars into the banking system to address what it called a “short-term mismatch,” local businessmen argue that the situation remains unresolved, with sourcing U.S. dollars still a major hurdle.

One such business, Double ‘D’ Trading and Distribution Limited, which imports perishables, has been facing a serious crisis. The company’s goods have been held up for more than three weeks due to the unavailability of foreign currency. The owner of the business, speaking to Kaieteur News, explained that their struggle to secure U.S. dollars began last November, shortly after the government injected US$80 million into the banking system to resolve the same issue.

My goods are spoiling on the port, and I’ve had to dump millions of dollars’ worth of products, said the owner. “The banking, the system and government must tell us what is going on moving forward. It is not good for investment.”

In a desperate bid to address the situation, Double ‘D’ Trading shared email correspondences with Kaieteur News showing how their bank turned down payment requests for suppliers due to a lack of U.S. currency. One email from the bank stated:

“Your payment requests were received; however, we were unable to proceed with the payment due to the unavailability of U.S. currency and are unable to commit to a date for processing. We are monitoring the situation and will expedite payment as soon as funds become available. We do apologize for the inconvenience.”

The business also sought to open accounts with other banks to secure foreign currency, but was met with refusal from at least two institutions. Kaieteur News reported that many banks are now declining new business accounts due to their own challenges sourcing enough foreign currency to handle transactions for existing clients.

Double ‘D’ Trading continues its attempts to source U.S. dollars, the owner detailed how the shortage has significantly impacted the business. The importer explained: If he agrees on a price with his supplier today he has to pay 50 percent upfront to secure the goods at that price, but made known that he fails to make the payment on time, he will lose the deal and be forced to pay more for the same items.

The businessman also highlighted the financial burden when goods arrive at the port and the supplier is unable to receive payment, the container stays at the port until he pays the 70 percent balance. And if he can’t make the payment within the ten-day free storage period? He will incur additional costs up to $150 per day for demurrage fees per container.

He stressed that these additional costs are ultimately passed on to consumers, who are forced to pay higher prices for essential food items. Worse still, the company faces losses when goods spoil due to delays in payment.

Importers of non-perishable goods are also raising prices to cover the higher costs they’ve incurred due to the foreign currency shortage. They are willing to wait for consumers to absorb the price hikes since their goods don’t spoil, but the burden is still being felt by the public.

Even Kaieteur News, has struggled to restock its printing supplies due to the unavailability of foreign currency, underscoring the widespread impact of the issue.

This isn’t the first time businesses have faced such challenges. Government/Bank of Guyana’s initial response has often been one of denial. In the past, officials initially downplayed the issue, only to later acknowledge its impact as the situation worsened. Questions remain about the government’s plan to resolve the issue, particularly as business owners are calling for more transparency and urgent action to avoid further economic strain.

https://www.kaieteurnewsonline.com/2025/03/27/businessmen-complain-of-foreign-currency-shortage/