Guyana to guard against steep revaluation of the dollar

Guyana to guard against steep revaluation of the dollar

 

The Bank of Guyana, the country’s Central Bank.

Finance Minister, Winston Jordan on Friday said government would put place safeguards to prevent a steep revaluation of the Guyana dollar as a result of expected large inflows of United States (US) dollars  from oil earnings.

“I will indicate to you that there could possibly be some appreciation of the Guyana dollar but we will have to guard against that using economic and financial policies to guard against any major appreciation of the currency,” he told a news conference.

Concerns have been repeatedly raised by local and foreign economists and other experts that Guyana’s traditional exports like rice, sugar and bauxite risk becoming to pricey to compete on the regional and international markets because production costs will soar if the Guyana dollar regains value. They have also advised Guyana against spending lavishly on things like wages and salaries and non-infrastructural projects.

The Finance Minister acknowledged that the value of the Guyana dollar will increase against the United States (US$1.00 = GY$213 selling), but declined to estimate how much that may be. He also decided against estimating what annual net oil revenues may be, saying that a number of models were being examined and he has to first decide what’s the price per barrel he has to use.

In such a situation where imports will become cheaper and exports more expensive, he said he was not worried that Guyana’s thriving agriculture sector would begin to lag, he said “I am not afraid of Guyana being prone to Dutch Disease” because “some of our industries are fairly well-established” and require significant injections of capital to become competitive.

The Finance Minister stressed that he personally does not support subsidies for businesses to cushion the impact of a higher value Guyana dollar

“I don’t want to talk too early about subsidies. I personally, this has nothing to do with government or anything,…don’t like subsidies. For me, it distorts resource allocation, it results in mismanagement; very often the people who should be the beneficiary don’t be the beneficiary and the people who you don’t want to be the beneficiary ending up being beneficiaries,” Jordan said while stressing that was his personal opinion.

He preferred the issue of subsidies to be discussed in the context of government’s Green State Development Strategy.

Jordan, a former Budget Director, said he was largely banking on the proposed Sovereign Wealth Fund (SWF) in which to park a lot of the unprecedented revenues instead of allowing it gush into an economy that cannot absorb huge amounts of foreign currency. “It also depends on what pace of development we are looking at and how much of the oil money gets seeped into the formal economy because, as I said, we will be holding it in the SWF (Sovereign Wealth Fund)  out there so it’s not like its in the formal economy…and at what rate will depend on our capacity to absorb,” he said.

He noted that both the private and public sector do not have the capacity to spend on huge capital projects.

A SWF green paper and legislation, including Santiago Principles, are to be tabled at Cabinet next month before it is taken to Cabinet for further consultations and eventually to Parliament before year-end.

“One of them, of course, is the Sovereign Wealth Fund  which the idea here is that all the monies that potentially coming from oil go there and we get out of that fund, based on the rules that we are putting in place and so on, enough to drive our developmental agenda,” he said. “To avoid Dutch Disease and all these kinds of things, we have to make sure that our dependence on oil is not a new dependence” as were the cases with bauxite and sugar, he added.

He said the governing coalition’s Green State Development Strategy would be Guyana’s medium term “economic blueprint” that will include resilient infrastructure, renewable energy sourcing and narrowing the socioeconomic gaps between the coast and the hinterland.

Jordan disclosed that government was beefing up its ability to conduct macroeconomic analysis and statistical development and management by Bank of Guyana. “Personally, I would like it to go a little faster but that happens when you don’t have money and you have to depend on arrangements like multilateral lending,” he said.

The United States oil giant, ExxonMobil, intends to begin commercial oil production in Guyana in 2020. Based on the latest discovery offshore, daily production is estimated at 500,000 barrels per day.

Original Post
skeldon_man posted:

" as a result of expected large inflows of United States (US) dollars from oil earnings"

When is this going to happen? Next Janam?

The PNC boys ran and borrowed $ 900 million to dig a big hole in anticipation that they will fill that hole with oil money.

They can't even run a cake shop, how can they run a country ?

Islamic Bank to make US$900 million available to support Guyana’s socio-economic and infrastructure development

0
314
Jordan and Dr Shamir Ally, Guyana’s alternate governor to the IsDB at last week's Islamic Development Bank governors meeting in Tunis
yuji22 posted:

Mits, you need to chill man, people will like and dislike statements. Like you forgot to take your blood pressure medication today ?

Your statement is asinine. I expected better from you. I tracking the ass who hit the like button. Admin should show  the posters who "like reply"  to a post like other forums.

skeldon_man posted:

" as a result of expected large inflows of United States (US) dollars from oil earnings"

When is this going to happen? Next Janam?

"Concerns have been repeatedly raised by local and foreign economists and other experts . . ."

Jordan addressing dah deh

de man responding to TK dem and all you can think of doing is post stupidness

Mitwah posted:
yuji22 posted:

Mits, you need to chill man, people will like and dislike statements. Like you forgot to take your blood pressure medication today ?

Your statement is asinine. I expected better from you. I tracking the ass who hit the like button. Admin should show  the posters who "like reply"  to a post like other forums.

Carry on Bhai, na buss a blood vessel. You sweat the small things, you need to take it on the jaw once in a while, roll with the punches every now and then.

Dave posted:

Djanjo , you seems to have confidence in the economy under your “god father”

you should set the example and invest in Granger economy ..

tell us when you gon start 

Suh you think is doomsday ? no future for the nation ..eh bhai.

yuji22 posted:
Mitwah posted:
yuji22 posted:

Mits, you need to chill man, people will like and dislike statements. Like you forgot to take your blood pressure medication today ?

Your statement is asinine. I expected better from you. I tracking the ass who hit the like button. Admin should show  the posters who "like reply"  to a post like other forums.

Carry on Bhai, na buss a blood vessel. You sweat the small things, you need to take it on the jaw once in a while, roll with the punches every now and then.

Thanks for acknowledging that your statement is asinine. Mitwah is cool. 

Mitwah posted:
 

Your statement is asinine. I expected better from you. I tracking the ass who hit the like button. Admin should show  the posters who "like reply"  to a post like other forums.

Just for the record Mits, it wasn't me. 

That said, why you getting so worked up over that comment? It doesn't seem bad at all.

ronan posted:
skeldon_man posted:

" as a result of expected large inflows of United States (US) dollars from oil earnings"

When is this going to happen? Next Janam?

"Concerns have been repeatedly raised by local and foreign economists and other experts . . ."

Jordan addressing dah deh

de man responding to TK dem and all you can think of doing is post stupidness

Bai even me went Aug month skool and me know better. What he seh is similar to Mr TK who seh let de rate rise to de psycological level of 200 and lack it up there. Doh is a lil appreciate. Not depreciate. As Minista of finance he should tell de peopkle some ball park estimate of de aile rev. Mr TK and dem IMF bais seh de big money coming after 2025. TK and he bais call it simulatshun. Yuh run it foh different price level foh get wan range. Yuh doan need one specific aile price. Exchange rate na rise till after 2023. But all dat depend one if dem na go pon a fareign goods binge. Hey hey hey...BTW...Mr TK seh a more subtle view of Dutch sickness. What yuh gat foh worry foh is de patronage and de swell up of public service pay that mek de private sector cyant compete. Mr TK seh dem economis bais gat a name foh doh. Dey call it Baumol cost disease. Dat is anada sickness pon de Dutch sickness. Hey hey hey...It much more complicated... 

Labba posted:
ronan posted:
skeldon_man posted:

" as a result of expected large inflows of United States (US) dollars from oil earnings"

When is this going to happen? Next Janam?

"Concerns have been repeatedly raised by local and foreign economists and other experts . . ."

Jordan addressing dah deh

de man responding to TK dem and all you can think of doing is post stupidness

Bai even me went Aug month skool and me know better. What he seh is similar to Mr TK who seh let de rate rise to de psycological level of 200 and lack it up there. Doh is a lil appreciate. Not depreciate. As Minista of finance he should tell de peopkle some ball park estimate of de aile rev. Mr TK and dem IMF bais seh de big money coming after 2025. TK and he bais call it simulatshun. Yuh run it foh different price level foh get wan range. Yuh doan need one specific aile price. Exchange rate na rise till after 2023. But all dat depend one if dem na go pon a fareign goods binge. Hey hey hey...BTW...Mr TK seh a more subtle view of Dutch sickness. What yuh gat foh worry foh is de patronage and de swell up of public service pay that mek de private sector cyant compete. Mr TK seh dem economis bais gat a name foh doh. Dey call it Baumol cost disease. Dat is anada sickness pon de Dutch sickness. Hey hey hey...It much more complicated... 

wuh does all did ecanomicsspeak got to do with my post?

ronan posted:
Labba posted:
ronan posted:
skeldon_man posted:

" as a result of expected large inflows of United States (US) dollars from oil earnings"

When is this going to happen? Next Janam?

"Concerns have been repeatedly raised by local and foreign economists and other experts . . ."

Jordan addressing dah deh

de man responding to TK dem and all you can think of doing is post stupidness

Bai even me went Aug month skool and me know better. What he seh is similar to Mr TK who seh let de rate rise to de psycological level of 200 and lack it up there. Doh is a lil appreciate. Not depreciate. As Minista of finance he should tell de peopkle some ball park estimate of de aile rev. Mr TK and dem IMF bais seh de big money coming after 2025. TK and he bais call it simulatshun. Yuh run it foh different price level foh get wan range. Yuh doan need one specific aile price. Exchange rate na rise till after 2023. But all dat depend one if dem na go pon a fareign goods binge. Hey hey hey...BTW...Mr TK seh a more subtle view of Dutch sickness. What yuh gat foh worry foh is de patronage and de swell up of public service pay that mek de private sector cyant compete. Mr TK seh dem economis bais gat a name foh doh. Dey call it Baumol cost disease. Dat is anada sickness pon de Dutch sickness. Hey hey hey...It much more complicated... 

wuh does all did ecanomicsspeak got to do with my post?

Because yuh into conspiracy theory. Hey hey hey...

Labba posted:
ronan posted:
Labba posted:
ronan posted:
skeldon_man posted:

" as a result of expected large inflows of United States (US) dollars from oil earnings"

When is this going to happen? Next Janam?

"Concerns have been repeatedly raised by local and foreign economists and other experts . . ."

Jordan addressing dah deh

de man responding to TK dem and all you can think of doing is post stupidness

Bai even me went Aug month skool and me know better. What he seh is similar to Mr TK who seh let de rate rise to de psycological level of 200 and lack it up there. Doh is a lil appreciate. Not depreciate. As Minista of finance he should tell de peopkle some ball park estimate of de aile rev. Mr TK and dem IMF bais seh de big money coming after 2025. TK and he bais call it simulatshun. Yuh run it foh different price level foh get wan range. Yuh doan need one specific aile price. Exchange rate na rise till after 2023. But all dat depend one if dem na go pon a fareign goods binge. Hey hey hey...BTW...Mr TK seh a more subtle view of Dutch sickness. What yuh gat foh worry foh is de patronage and de swell up of public service pay that mek de private sector cyant compete. Mr TK seh dem economis bais gat a name foh doh. Dey call it Baumol cost disease. Dat is anada sickness pon de Dutch sickness. Hey hey hey...It much more complicated... 

wuh does all did ecanomicsspeak got to do with my post?

Because yuh into conspiracy theory. Hey hey hey...

"because. . . " doesn't answer my question

yuji22 posted:

Islamic Bank to make US$900 million available to support Guyana’s socio-economic and infrastructure development

0
314
Jordan and Dr Shamir Ally, Guyana’s alternate governor to the IsDB at last week's Islamic Development Bank governors meeting in Tunis

Hey hey hey...we bai Shammo...de man with de 7 benze and private plane park in Ocala. LOL! 

Labba posted:

Mr Granger seh green state and green building. Mr Patto seh natural gas powah light. Doh is good gas foh warm up de place when dem escape am in de athmosphere. Den yuh gat Mr Raphael seh aile baby aile. Hey hey hey...

Hey hey hey Labba, doesn’t cow fart do same as natural gas?  Dem cyan contain natural gas, dem cyant contain cow fart!

Baseman posted:
Labba posted:

Mr Granger seh green state and green building. Mr Patto seh natural gas powah light. Doh is good gas foh warm up de place when dem escape am in de athmosphere. Den yuh gat Mr Raphael seh aile baby aile. Hey hey hey...

Hey hey hey Labba, doesn’t cow fart do same as natural gas?  Dem cyan contain natural gas, dem cyant contain cow fart!

Hey Baseman, The ‘fartpacks’ extract 300 litres of methane a day from a tube inserted into the cow's digestive tract and convert it into enough energy to run a car for 24 hours.

Read more: http://www.dailymail.co.uk/sci...s.html#ixzz5CkAIFPM9
Follow us: @MailOnline on Twitter | DailyMail on Facebook

Image result

 

Mitwah posted:
Baseman posted:
Labba posted:

Mr Granger seh green state and green building. Mr Patto seh natural gas powah light. Doh is good gas foh warm up de place when dem escape am in de athmosphere. Den yuh gat Mr Raphael seh aile baby aile. Hey hey hey...

Hey hey hey Labba, doesn’t cow fart do same as natural gas?  Dem cyan contain natural gas, dem cyant contain cow fart!

Hey Baseman, The ‘fartpacks’ extract 300 litres of methane a day from a tube inserted into the cow's digestive tract and convert it into enough energy to run a car for 24 hours.

Read more: http://www.dailymail.co.uk/sci...s.html#ixzz5CkAIFPM9
Follow us: @MailOnline on Twitter | DailyMail on Facebook

Image result

 

Holy cow, are you friggin' with my head this early Sunday marnin' bai?  Is this fuh real?

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