Small Exchange: Guyana considers bolstering foreign exchange, Sydney fintech develops SME FX platform and T&T supports local manufacturers
This week's currency news rounded up.
The Bank of Guyana attempts to restrain the decline of the dollar
Late last week, the Bank of Guyana was considering the possibility of adding more foreign exchange to the local market after the country's finance minister Winston Jordan met with top representatives from the Guyana Association of Bankers (GAB), Demerara Waves reports.
The meeting was set to establish what commercial banks and the Central Bank could do to "support them (the GAB) to get them over this hump".
Given the local economy is battling a US$30 million fall in export earnings, Jordan has not ruled out closing retention accounts of exporters to plug foreign exchange hoarding.
Earlier this year, Guyana's advocate for private businesses, the Private Sector Commission, denounced the government's stricter regulations and tighter monitoring of the country's foreign exchange market.
Sydney fintech develops SME FX platform
In an effort to assist small businesses, Sydney fintech startup CurrencyVue has developed a foreign exchange platform that manages currency exposure risks and provides support for the NSW Government's Jobs for NSW initiative.
The platform, to be launched in mid-2017, directly connects banking and accounting systems, providing SMEs with affordable and improved access to international markets.
"SMEs need to understand and manage financial risks. For example, post-Brexit the British pound fell about 10% against the US dollar, meaning an unhedged UK importer paying for US goods would have added an extra 10% cost overnight," CurrencyVue CEO Matthew Tyrrell said.
Trinidad and Tobago shifts focus to local manufacturers
The Jamaica Observer reports that the Trinidad and Tobago government is considering a new foreign exchange issuance policy that could benefit local manufacturers.
Trinidad and Tobago has recently suffered a shortage of foreign exchange, mostly as a result of declining revenue within the country's energy sector.
Late last week, finance minister Colm Imbert said that the government must begin shifting focus away from companies only importing manufactured goods and get behind local manufacturers who are exporting goods into international regions such as Central America.
Each week Small Exchange sums up currency news from around the globe and looks into how it impacts exchange rates and options.
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- Small Exchange: Trump abandons China rhetoric, Pakistan ups foreign reserves and South Korea’s forex deposits hit record high
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- Small Exchange: IMF challenges Nigeria’s forex constraints, illicit Indian money changers are targeted and Egypt’s foreign debt rises