For the last two to three years, Guyana has been widely hailed—by the President of the Cooperative Republic of Guyana, the Minister of Finance, the Vice President with responsibility for the oil and gas sector, and international institutions such as the IMF and World Bank—as the fastest-growing economy in the world. Powered by oil production, Guyana’s GDP growth has indeed been unmatched globally. However, this rapid growth sits side by side with a critical public concern: the stability and value of the Guyanese Dollar (GYD).

Official vs. Market Exchange Rates

The Bank of Guyana’s official exchange rate remains pegged at GYD 208.50 per US$1. Commercial banks and cambios, however, transact at slightly different rates:

Commercial Banks (Georgetown, Sept/Oct 2025)

• Buying: GYD 208–209 per US$1
• Selling: GYD 211–214 per US$1

Licensed Cambios

• Cash transactions: Buying around GYD 218–220, Selling around GYD 225–227
• Electronic transfers: Often higher, Selling up to GYD 230 per US$1

Street Rate (Unofficial Market)

• Reports indicate US$ selling at GYD 230–235 per US$1, depending on availability and method of transaction.

The gap between the official rate (GYD 208.50) and the higher commercial or street rates (as high as GYD 230–235) illustrates an important reality: while Guyana’s economy is expanding, foreign currency demand remains strong, and supply into the domestic system is still constrained.

Why the Discrepancy?

1. Oil Revenues and Conversion – Guyana’s oil earnings, though substantial, are largely held in the Natural Resource Fund (NRF) abroad in US dollars. Only portions are periodically converted to GYD for the national budget. This means that not all of the US dollar inflows from oil reach the local foreign exchange market.

2. Import Dependency – Guyana remains highly import-dependent, with billions spent annually on fuel, machinery, food, and construction materials. This places continuous pressure on demand for foreign exchange.

3. Limited Non-Oil Exports – While traditional exports like rice, sugar, bauxite, and gold bring in foreign exchange, they have not kept pace with the surge in imports.

4. Reserves and Stability – Guyana’s international reserves hover around US$0.9 billion. While this provides a cushion, it is small relative to annual import needs (approximately US$6–7 billion), limiting the central bank’s ability to fully stabilise exchange pressures.

The Fastest-Growing Economy with a Flat Currency

It may seem contradictory that Guyana’s economy can grow by double digits while its currency does not strengthen. However, GDP growth and exchange rate movement do not always move in tandem. In Guyana’s case:

• GDP growth reflects oil production and export revenues.
• Exchange rate stability reflects how much of those revenues are converted into the domestic economy and how they balance against import demand.

Thus, Guyana can be both the fastest-growing economy and still face a US dollar exchange market where rates stretch to GYD 230 or more.

Ites this

Guyana’s growth story is real, but so too is the exchange rate reality experienced by businesses and households daily. Unless more US dollar inflows are converted domestically or non-oil exports expand significantly, the GYD will continue to trade at a premium above the official peg. The contradiction between headlines of prosperity and the pocket realities of exchange rates is one of the defining economic challenges of this new oil economy.