In light of its new role to be the Operational Manager for the Natural Resource Fund (NRF), Central Bank is taking several steps to ensure its systems, as well as its members of staff, are efficient and knowledgeable enough for the task ahead.
With the help of the Inter-American Development Bank (IDB), Central Bank has initiated steps to strengthen its national accounts and balance of payment methods considering the new economic context. It has also taken the initiative to strengthen its analytical capabilities, develop modeling tools of NRF transfers to the budget, and to ensure that the effects are incorporated into its monetary and exchange rates policies.
The Guyana Standard understands that a team from the IDB is providing funding, technical assistance and knowledge products to support the institution in this regard.
The IDB team is expected to review and provide recommendations to update current inflation and exchange rate policies and guidelines for implementation to ensure adequate provisions are made for oil and gas; develop modeling tools to analyze the flow of oil revenues from the Natural Resource Fund into the budget as these may have implications for the economy in terms of inflation, currency value, and real exchange rate; and provide a compilation of the national accounts data in coordination with the Bureau of Statistics.
There would also be a period to allow for the transfer of knowledge to the various staff members within Bank of Guyana on the modelling tools and new policy guidelines to be followed.