Making sense of the depreciation of Guyana dollar: slowdown in drugs money? Part 3

The supposed decline in the narco economy since APNU+AFC came to power in 2015 is often proposed by two very vocal members of SOCU – Mr Eric Phillips and Mr Tacuma Ogunseye – as the main factor for the depreciation of the Guyana dollar. Their basic thesis rests on the notion that trafficking of narcotics generates a lot of foreign exchange for the Guyanese economy. Indeed, supporters of the government submit this alibi as the primary reason for the slowdown in important sectors of the Guyanese economy. Notice, I wrote sectors and not economy. The aggregate economy grew at around 3% mainly because of low-quality growth in the mining sector. However, as noted in the previous column, sectors requiring intermediate inputs (primarily manufacturing and agro-industry) are doing poorly. I will explore in a later column the foreign currency implications of the situation in which the GDP is growing but the economy is suffering from structural malaise and limited foreign exchange earnings.…to continue reading this article, please subscribe.  Already a subscriber ? Sign In


About these comments

The comments section is intended to provide a forum for reasoned and reasonable debate on the newspaper's content and is an extension of the newspaper and what it has become well known for over its history: accuracy, balance and fairness. We reserve the right to edit or delete comments which contain attacks on other users, slander, coarse language and profanity, and gratuitous and incendiary references to race and ethnicity.

Get the day's headlines from SN in your inbox every morning:

Most Read This Week

  1. Boy critical, siblings hurt in crash

  2. No renegotiating illegal parking meter contract

  3. Man charged with stealing $700,000 from Republic Bank customer’s account

  4. Shot pandit recovering

  5. Stephen Vieira released

  6. GBTI to recover funds lost in alleged fraud -Board Chairman

  7. Karen Williams

    Links between Roger Khan, Leslie Ramsammy were strong – US Charge d’ Affaires in cable

  8. SOCU investigating cocaine trafficker ‘Haffa’ for alleged money laundering – James

  9. Corentyne man gets 18 years for peacemaker’s murder

Recommended For You