10000 Dollars (Guyanese Independence) – Guyana

In 2021, Guyana's currency situation was characterized by a managed exchange rate regime for the Guyana Dollar (GYD), which was pegged to the US Dollar within a narrow band. The official exchange rate was maintained by the Bank of Guyana at approximately GYD 209 per USD. However, a significant and persistent gap existed between this official rate and the higher rate available on the parallel market, where the dollar traded at roughly GYD 230-235. This disparity highlighted underlying market pressures and a higher demand for foreign currency than was being supplied through official channels, a common challenge for small, import-dependent economies.

The primary economic context for this situation was the nascent oil boom, following major offshore discoveries. While substantial oil revenues began to flow in 2020, their full impact on the macroeconomy and currency stability was still unfolding in 2021. The government was establishing its Natural Resource Fund and navigating how to manage these inflows without causing excessive inflation or Dutch disease—a scenario where the oil sector strengthens the currency and harms other exports. Consequently, the direct effect of oil revenues on the everyday foreign exchange market for businesses and individuals remained limited in the short term.

Key pressures on the currency included a high demand for foreign exchange to pay for imports and facilitate overseas remittances, alongside some domestic uncertainty. The political instability following the contentious 2020 elections, which was only resolved in August 2020, had lingering effects on business confidence in early 2021. Furthermore, the ongoing COVID-19 pandemic continued to disrupt traditional economic sectors like gold mining and sugar, affecting export earnings. Therefore, 2021 was a transitional year where Guyana's currency dynamics reflected its pre-oil economic structure while standing on the brink of a transformative, oil-driven fiscal future.