Former Finance Minister Urges Guyana to Protect Oil Revenues from Price Fluctuations

May 5, 2025 - 18:58

Former Guyanese finance minister Winston Jordan is advising the government to implement strategies to hedge its oil production against potential declines in oil prices. With the nation experiencing a surge in oil revenues, the risk of price volatility poses a significant threat to the economy's stability and growth.

Jordan emphasizes that as global oil markets can be unpredictable, proactive measures are essential to safeguard the financial gains from the burgeoning oil sector. He suggests that hedging could provide a safety net, allowing the government to stabilize its income and plan for future investments in infrastructure and social programs.

The call for hedging comes at a crucial time as Guyana's oil production continues to expand, attracting international attention and investment. However, Jordan warns that without protective measures in place, the country could face severe economic challenges if oil prices were to plummet. The government is urged to act swiftly to ensure the long-term sustainability of its oil-dependent economy.