Observations of the foreign exchange market in Guyana

By Rawle Lucas On In Business Review |
LUCAS STOCK INDEX The Lucas Stock Index (LSI) fell 0.069 percent during the final period of trading in January 2016. The stocks of three companies were traded with 30,680 shares changing hands. There were no Climbers and one Tumbler. The stocks of Banks DIH (DIH) fell 0.5 percent on the sale of 28,482 shares. In the meanwhile, the stocks, Demerara Distillers Limited (DDL) and Demerara Tobacco Company (DTC) remained unchanged on the sale of 2,075 and 123 shares respectively.
LUCAS STOCK INDEX The Lucas Stock Index (LSI) fell 0.069 percent during the final period of trading in January 2016. The stocks of three companies were traded with 30,680 shares changing hands. There were no Climbers and one Tumbler. The stocks of Banks DIH (DIH) fell 0.5 percent on the sale of 28,482 shares. In the meanwhile, the stocks, Demerara Distillers Limited (DDL) and Demerara Tobacco Company (DTC) remained unchanged on the sale of 2,075 and 123 shares respectively.

Movement of money

One of the most important aspects of the global political economy is the finance structure. This is the part that deals with foreign debt, foreign currency relationships and international payments. This is the pattern of money flows between and among nations. The finance structure defines who business pagehas access to money, how they gain access to the money and on what terms are they able to do so. The movement of money could take many forms. One is the movement as a loan. Another form is the movement as foreign direct investment. Further, the movement of money could involve the exchange of currency. An important part of that structure in Guyana is the cambio market. Given the significance of this market to the proper functioning of the Guyana economy, it is useful to examine this market periodically. This article provides some observations of the cambio market.

Aggregate value

The cambio market is the place where people exchange Guyanese dollars for foreign currency. The aggregate value of transactions makes the cambio market the largest market in Guyana. In 2014, the value of the market was about US$1.4 billion. Like many commodity markets, the foreign currency market is considered highly decentralized. Competition in the market could only be