Dr. Ashni Singh:
What is the value of the G$5,000 note? Is it USD25? Right? (It is barely worth the paper it is printed on)
Does this suggest something about your currency? Why do you, a London-trained economist insist on using a looney currency for your country? Your currency lacks value, lacks integrity. And, you invite mockery and laughter for your nation's currency.
Does it not make sense to create a new Guyana dollar and set it at par with USD, namely one $G1 = 1USD. What is the upside of this? What is the downside of this?
Your currency would end its era being looked at as a looney.
Of course all transactions and values of all assets would be denominated on the new G$1=USD1. This means the worker who yesterday earned a monthly salary of $G40,000 would now earn $200 (new Guyana dollars). This is more realistic with comparable values of other nation's currency. Of course to the Guyana worker accustomed to receiving thousands of dollars of a looney currency will now have to adjust to a more realistic sense of values.
A still better idea is to adopt the USD as your nation's currency. Guyanese citizens will not longer have to worry about dealing with Cambios. (They lose money when dealing with Cambios - it is time to close down Cambios). And, Guyana will enjoy a sense of freedom when they carry around an Internationally accepted currency in their pockets.
We should USDollarize our economy - all foreign companies (Barama, gold-mining etc) who earn USD must be required to pay their employees in USD. Remittances from Guyanese abroad should be paid to the families in USD or in the currency remitted - Let the families deposit it in USD in the banks etc.
Adopting the USD will benefit the economy. Foreign Investors will not have to worry about losing values when remitting their profits - or in the event of liquidating their investment. This will attract more foreign investors.
MIKE PERSAUD: