Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

GUYANA

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of December 31, 2006)

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: December 27, 1966.
Exchange Measures
Restrictions and/or multiple currency practicesNo restrictions as reported in the latest staff report as of December 31, 2006.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)Yes.
Other security restrictionsIn accordance with UN Security Council resolutions, restrictions are applied on financial transactions and assets of the Taliban, Al-Qaida, and individuals associated with it, and persons and groups associated with terrorism.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyThe currency of Guyana is the Guyana dollar.
Exchange rate structureUnitary.
Classification
Conventional pegged arrangementThe exchange rate of the Guyana dollar is determined in the cambio market, although the authorities intervene in the foreign exchange market as conditions require. The Bank of Guyana (BOG) conducts certain transactions on the basis of the cambio exchange rate by periodically averaging quotations of the three largest dealers. In accordance with bilateral agreements with the CBs of CARICOM, the BOG quotes weekly rates for certain CARICOM currencies.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketThe only arrangement for forward cover against exchange rate risk operates in the official sector with respect to exchange rate guarantees that are provided to certain deposits in dormant accounts. However, no exchange rate guarantee has been given for deposits made after end-March 1989.
Official cover of forward operationsYes.
References to legal instruments and hyperlinksn.a.
Arrangements for Payments and Receipts
Prescription of currency requirementsn.a.
Payments arrangements
Bilateral payments arrangements
OperativeThere are arrangements with all CARICOM central banks.
Regional arrangementsGuyana is a member of CARICOM.
Administration of controlNo.
Payments arrears
OfficialAs a consequence of ongoing negotiations, there are technical arrears to bilateral creditors: Argentina, Bulgaria, China, Kuwait, Libya, Republic of Montenegro, Republic of Serbia, the United Arab Emirates, and República Bolivariana de Venezuela. There are also technical arrears to commercial creditors in India and the United Kingdom.
PrivateArrears exist on certain dormant accounts holding domestic currency deposits equivalent in value to pending applications for foreign exchange.
Controls on trade in gold (coins and/or bullion)
On domestic ownership and/or tradeResidents other than the monetary authorities, ADs, producers of gold, and authorized industrial users are not allowed to hold or acquire gold in any form except for numismatic purposes and jewelry, at home or abroad, without special permission.
On external tradeImports and exports of gold in any form by, or on behalf of, the monetary authorities, ADs, producers of gold, and industrial users require permits endorsed by the Guyana Gold Board.
Controls on exports and imports of banknotesTravelers entering or leaving Guyana must declare foreign currency in excess of the equivalent of US$10,000.
On exports
Foreign currencyYes.
On imports
Foreign currencyYes.
References to legal instruments and hyperlinksn.a.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyExporters are allowed to maintain and operate foreign exchange accounts. These accounts are approved on merit but are generally granted to bona fide exporters who require imported inputs for production and/or have external loan obligations. These accounts may be credited with all or a portion of retained export proceeds and proceeds of foreign currency loans. They may be debited freely for any payments at the discretion of the account holder.
Approval requiredYes.
Held abroadYes.
Accounts in domestic currency held abroadNo.
Accounts in domestic currency convertible into foreign currencyThe balances of these accounts may be converted at the prevailing cambio exchange rate.
References to legal instruments and hyperlinksn.a.
Nonresident Accounts
Foreign exchange accounts permittedExternal accounts may be opened by commercial banks, without the prior approval of the central bank, for citizens of Guyana residing permanently abroad, citizens of other countries temporarily residing in Guyana, nonresidents attached to diplomatic missions or international organizations, branches of companies incorporated outside Guyana, and companies incorporated in Guyana but controlled by nonresidents abroad. These accounts may be maintained in U.S. dollars, pounds sterling, or Canadian dollars and may be credited with noncash instruments of convertible foreign currencies transferred through the banking system. These accounts may also be credited freely with all authorized payments by residents of Guyana to nonresidents; other credits require approval. They may be debited freely for payments for any purpose to residents of any country, for transfers to other external accounts, for withdrawals by the account holder in Guyana, and for transfers to nonresident accounts.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsNo.
References to legal instruments and hyperlinksn.a.
Imports and Import Payments
Foreign exchange budgetThe BOG prepares a statement of convertible currency receipts and payments to monitor projected flows.
Financing requirements for importsImport transactions effected through the cambio exchange market are permitted without restriction. Most imports of consumer goods take place on this basis. Certain payments for official imports effected by commercial banks on behalf of the BOG require the BOG’s prior approval.
Documentation requirements for release of foreign exchange for importsRequirements are related mainly to petroleum products. Documents required include invoices, bills of lading, and certificates of origin.
Import licenses and other nontariff measuresThere are no licensing requirements for permissible imports, except for petroleum products and some 20 items affecting national security, public health and safety, and the environment.
Negative listImports of unprocessed meat, poultry, fruit, and processed fruit items from non-CARICOM sources are restricted and subject to import-licensing controls.
Import taxes and/or tariffsThe fourth phase of the CARICOM CET is applied to all imports from sources outside CARICOM. Duty rates range from 5% to 20%, except for agricultural products, for which the rate is 40%. A duty rate of 100% applies to imports of chicken from non-CARICOM sources, but those from CARICOM countries are exempt. The duty on evaporated milk is 20%.
State import monopolyNo.
References to legal instruments and hyperlinksn.a.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsNo.
Export licensesLicenses are required for exports of gold and wildlife.
Without quotasGold exports are not subject to quotas.
With quotasThere are quotas for the supply of some commodities to preferential markets and for wildlife exports.
Export taxesThere is a levy on the export of rice; the proceeds from this levy are reinvested in the rice industry. There is no levy on sugar exports; however, an export duty of G$1 applies to all unrefined sugar exports to extraregional destinations. An export duty is applied to exports of timber, bauxite, live birds, aquarium fish, greenheart, raw gold, and all precious stones.
References to legal instruments and hyperlinksn.a.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
References to legal instruments and hyperlinksn.a.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksn.a.
Capital Transactions
Controls on capital transactionsYes.
Repatriation requirementsn.a.
Surrender requirementsn.a.
Controls on capital and money market instrumentsNo.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsAll types of credit operations are controlled.
Commercial creditsControls apply to all these transactions.
Financial credits
By residents to nonresidentsYes.
To residents from nonresidentsBanks are required to obtain approval from the MOF before lending to nonresident enterprises.
Guarantees, sureties, and financial backup facilitiesControls apply to all these transactions.
Controls on direct investmentNo.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsNo.
Controls on personal capital transactionsNo.
References to legal instruments and hyperlinksn.a.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutions
Lending to nonresidents (financial or commercial credits)Banks are required to obtain approval from the MOF before lending locally in foreign exchange, except for lending to an AD.
Lending locally in foreign exchangeYes.
Open foreign exchange position limitsOpen positions are monitored.
Provisions specific to institutional investors
Pension fundsn.a.
Investment firms and collective investment fundsn.a.
References to legal instruments and hyperlinksn.a.
Changes during 2006
No significant changes occurred in the exchange and trade system.

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