“We are monitoring it,” he said, noting that part of the delay stems from how some businesses are approaching the system.
“A lot of the businessmen, when we look at the framework, we see multiple requests. They’ll go to five banks and submit the same request at each. Some people still think they can beat the system.”
Dr Jagdeo explained that two main factors are contributing to the slowdown. The first is a shortage of physical banknotes, which he said, “is creating a shortage of the notes more than anything else.”
The second involves cash exports by some traders, which puts additional strain on the available currency. “They declare it, but they take it out in bundles. It puts more strain on the availability of physical currency because bank drafts are easier to manage.”
Despite the current delays, the Vice President assured that there is no systemic shortage of foreign currency and that the government remains focused on maintaining stability within the financial system. (Department of Public Information)
