The weak Guyana dollar

Stabroek News
August 22, 2001

Dear Editor,

The cost of living is very high, that is why many people are emigrating to seek a better way of life. One cannot buy a house, or even rent a house or build a house because of the cost of materials.

Wage increases don't help much as the Guyana dollar is so weak and has little purchasing power. Can't government bring down the rate of exchange with the US dollar?

Yours faithfully,

(name and address provided)

Editor's note

The rate of exchange is a reflection of the weakness of the economy. It is fixed according to the supply and demand for currency. If Guyana produced a lot more than it does it could import less thus saving US dollars and, if it can find suitable overseas markets, export more thus earning more US dollars. The rate of exchange would then fall, making the Guyana dollar stronger and making it easier to afford imported goods like housing materials.