Guyana dollar slides Drafts traded at $190 yesterday Stabroek News November 30, 2000 The Guyana dollar continues to lose its value against the US, trading at a leading city bank at $190=US$1 yesterday. The National Bank of Industry and Commerce (NBIC) was selling drafts at $190 to the US dollar yesterday and notes were two notches below. Managing Director of NBIC, Nigel Baptiste, said the price was reflective of demand and supply at work. However, Director of Research at the Bank of Guyana, Dr Gobin Ganga, said last evening that there was no reason for the rate to rise as there was a net supply of US currency in the system. Stabroek News was told that the central bank intervened in the currency market last week to stem a depreciation of the Guyana dollar. But with NBIC selling drafts at $190 a week later, the intervention might have been of no effect. Dr Ganga only confirmed the intervention, but refused to say how much currency was released into the system or comment on its effectiveness. NBIC, the largest commercial bank in the city, was buying US notes at $182 and drafts at $184, but selling these at $188 and $190 respectively yesterday. The second largest bank, the Guyana Bank for Trade and Industry was selling drafts at $186 and buying at $181. It was buying notes at $174 and selling them at $185. Demerara Bank Ltd, another key player in the foreign currency market, was selling drafts at $186 and notes at $184. It was buying at $181 and $178 respectively. A government source indicated yesterday that over the last three months NBIC had been acting as a price leader in the market and was speculating. But when this was put to Baptiste, he questioned what would be the rationale for the bank to take this course of action. While the increase in the selling rate of drafts might be a result of seasonality factors (increased demand for the currency in the run up to Christmas), it reflected a $6 increase in the sale price by NBIC from the start of this year. Follow the goings-on in Guyana in Guyana Today