One Guyana Dollar is currently valued at around 210 US dollars. Guyana’s currency is weak because of numerous factors, but one of the most influential of those factors is the low GDP that the country produced over the last several decades. However, Guyana’s financial windfall from oil revenues now enables it to have a much stronger currency.
According to the IMF, Guyana’s economy remains resilient in the face of global economic tensions, and is on track for 47.2% growth by year-end. This is only a slight variation from the 47.9% projected by the World Bank, which is also projecting growth of 34.3% in 2023 for Guyana. GDP in Guyana is expected to reach 10.90 USD Billion by the end of 2022, according to Trading Economics global macro models and analysts expectations. In the long-term, the Guyana GDP is projected to trend around 14.70 USD Billion in 2023 and 15.20 USD Billion in 2024, according to our econometric models.
While the PPP/C government has expressed some amount of resistance to the idea of reevaluating the Guyana dollar, a reevaluation is inevitable. It must be done, and it should be done in an acute and informed way so as to increase the net worth of every Guyanese citizen. The Guyana Government should inform the citizens at least six months ahead of time when it plans to reevaluate the Guyana dollar and by what value so that citizens can set themselves up to benefit from the reevaluation.
To put this into perspective. If an ordinary citizen has GY$210,000.00 in the bank, that money is now worth just US$1000.00. If the Guyana dollar is reevaluated, for example, to 4 Guyana dollars to 1 US dollar, that GY$210,000.00 will be instantly transformed to US$52,500.00.
In this way, Guyanese citizens can become rich overnight in a similar way to which a handful of fortunate people in the United States became millionaires after the stock market crash of 1929 in the USA.
Remember, the Guyana Government needs to think in the best interest of the ordinary citizen, and needs to think of new and innovative ways of making Guyana’s oil resources benefit every Guyanese. A timely, informed, and acute revaluation of Guyana’s currency can serve a noble purpose in this regard. A six-month notice of the reevaluation can give citizens enough time to take out loans, liquidate assets, and even borrow money from relatives overseas to put in the bank so as to benefit from a pre-scheduled reevaluation.