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Bigger Bills Signifies a Weaker Currency

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First Published: 22nd of January, 2022 by Patrick Carpen.

Last updated: June 27, 2022 at 15:42 pm

Many Guyanese are excited about the release of a new, beautifully designed, 2000 Guyana dollar note. However, this is not necessarily a good thing since it signifies the continual decline of Guyana’s buying power even in the face of a growing GDP resulting from oil exports. Managing an economy is a technical task. If the currency gets too strong without adjusting local policies, it becomes difficult for the country to export overseas. On the other hand, inflation makes the currency less powerful. The worse case scenario of inflation ever recorded is the case of neighboring Venezuela which conjures up those infamous images of valueless Venezuelan bolivars scattered and trampled underfoot in the streets of Venezuela.

There were stories told by the older folks who lived during colonial times that Guyana’s currency was so strong during British rule that you could buy everything they needed at the market with just one cent.

After Independence in 1966, Guyana’s economy was on a steady decline with rapid inflation which forced the government to roll out bigger notes to fill the gap. But with the exponential revenues now being derived from oil exports, Guyana’s currency should not be weakening, but strengthening against the US dollar.

Read More: Guyana’s Failed Independence

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