Guyana’s government has unveiled an ambitious plan to modernise and tighten the country’s financial system, introducing new foreign exchange controls, banking oversight, and a modernised stock market designed to unlock idle capital. The sweeping reforms, announced by President Irfaan Ali, come amid a sharp rise in foreign currency outflows and a growing need to safeguard financial stability as the oil-driven economy expands.
Speaking after a high-level meeting with the Bank of Guyana (BoG), the Guyana Revenue Authority (GRA), and commercial bank executives, President Ali said the country’s foreign exchange market had seen “massive growth” in activity and required stronger monitoring.
“The implementation of these nine standard operating procedures (SOPs) is designed to tighten foreign exchange controls, improve transparency, and prevent abuse of the system, especially in the context of rising demand and capital flight,” the President stated.
According to government data, the outflow of US dollars has nearly quadrupled in one year to about US$1.2bn, while the central bank’s interventions in the foreign exchange market have surged from US$332mn in 2024 to US$1.2bn in 2025, with US$160mn still pending. Credit card transactions have also ballooned from US$91.3mn in 2023 to US$347.5mn in 2024, with US$252mn already recorded in 2025.
“We’ve also noticed massive growth in credit card transactions… We’re now examining that growth, profiling that growth to see whether personal credit cards are used to clear business transactions and in what volume, because this is important for us to understand,” Ali said
The new nine-point framework seeks to stem excessive demand for foreign currency and ensure that all cross-border transactions are legitimate. Importers will now be required to submit invoices, bills of lading, and GRA compliance certificates before commercial banks can release foreign exchange. Banks must also forward copies of these documents to the Bank of Guyana for verification through a new “single-window” clearing system designed to reconcile transactions among the central bank, commercial banks, and the GRA.
Ali said that the measures would be implemented “with immediate effect” and that entities found engaging in inflated invoicing or related-party capital flight would face penalties. Commercial banks have also been instructed to ensure that personal credit cards are used strictly for personal transactions and not for business payments. Meanwhile, companies operating in the oil and gas sector under Guyana’s local content laws will be required to maintain local bank accounts for all foreign currency earnings, with forthcoming amendments to the legislation to enforce compliance.
Vice President Bharrat Jagdeo later clarified that the new rules would not burden ordinary Guyanese or small firms. “We’re not going to restrict Guyanese from purchasing foreign currency,” he explained. “In fact, we will make sure that we provide adequate amounts from the Central Bank to meet domestic demand, but we’re going to try to close the loopholes on some of those who have been abusing the system.” He emphasised that the measures were directed primarily at large-scale foreign exchange users and foreign entities that evade taxes or transfer profits abroad.
“If you go for your small business, you wouldn’t have to go through that rigid system of submitting all the invoices to show that the invoices match the demand,” said Jagdeo, assuring that small business owners would not face the same level of scrutiny. He also noted that many foreign-owned retailers, including Chinese-operated supermarkets, operate outside the banking system altogether, arguing that closing such loopholes will enhance tax collection and ensure fair access to US dollars.
Ali insisted that the country’s foreign exchange market remains stable and liquid. “There is no crisis in the foreign currency market,” Jagdeo added, stressing that “we’re in a great position today to address any growth in demand for foreign currency in the future.”
In parallel with the foreign exchange reforms, the government is advancing plans to modernise Guyana’s stock market and broaden investment opportunities. Economist Richard Rambarran welcomed the initiative, describing it as a “significant step toward driving economic growth.” He explained that a large pool of capital is currently “idle” in bank savings and could be mobilised through an upgraded stock exchange.
President Ali confirmed that the government will establish a junior stock exchange to help smaller businesses raise capital and integrate into the formal financial system. Rambarran called this development “extremely important,” noting that “the junior stock market really permits smaller enterprises to integrate into the financial architecture, raise capital, modernise their operations, and structure themselves for increased investment.”
The dual reform package aimed at tightening foreign exchange supervision while modernising capital markets marks one of the most comprehensive overhauls of Guyana’s financial architecture in recent decades. It comes at a critical juncture where rapid economic expansion has exposed vulnerabilities. Whether it succeeds will depend on disciplined enforcement, technological integration, and the private sector’s readiness to adapt to a more regulated and transparent financial landscape.
Source: Caribbean Insight