An apparent shortage of $5000 bills at the Bank of Guyana has become a growing concern, as the government’s $100,000 cash grant payout continues to affect the local currency supply. Many citizens, especially those cashing large amounts, have reported receiving payouts in smaller denominations, which has sparked frustration.
One woman, who spoke with Village Voice News, shared her recent experience at a commercial bank when she went to cash a $1 million cheque for the construction of her house. “I was given $500,000 in $1000 bills and the rest in $500 bills,” she explained. “It was frustrating because I had expected to receive a larger portion of the payout in $5000 bills. It’s hard to manage such large amounts with so many smaller notes.”
The cash grant initiative, aimed at providing financial relief to citizens, has undoubtedly increased the demand for currency, particularly the higher denomination $5000 bills. Experts argue that the government, having planned the distribution of these funds, should have anticipated the impact on the money supply, especially for individuals needing large sums. Another concern the Government overlooked is that security and exposure to being robbed carrying large sums of money.
Critics point out that more efficient disbursement options should have been explored. Electronic transfer- Direct Deposit into workers’ account for example- could have reduced the strain on physical cash. Some government services, such as the National Insurance Scheme (NIS) and the Post Office, responding to the scarcity of $5000 notes are addressing the sorun by issuing pensions and money orders in $2000, $1000, and $100 bills.
However, many areas still face significant challenges, especially in rural and remote regions, where access to electronic payments is limited. With Guyana being a high dependent cash transactions country, the shortage of $5000 bills is causing unnecessary inconveniences.
The programme has highlighted government’s hodge podge management approach and the need for a more diversified approach to cash disbursements. While the payout may have been well-intentioned, the reliance on physical currency may need rethinking to ensure a more efficient, safer and equitable distribution system.