PORT OF SPAIN, Trinidad, CMC – Governor of the Central Bank of Trinidad and Tobago (CBTT), Larry Howai, has acknowledged that finding a solution to the ongoing problems in the foreign exchange market is a priority.
But he has noted that a long-term solution could only occur when mechanisms are found to bring demand and supply into equilibrium, and that “this is still some way off”.
Howai met with representatives of the Bankers Association of Trinidad and Tobago (BATT) on Monday as part of a series of key stakeholder engagements following his recent appointment to the post.
A statement issued following the meeting stated that Howai emphasised the importance of continued and robust collaboration between the Central Bank and BATT as the financial sector navigates the current economic environment.
It said he reaffirmed the CBTT’s commitment to working closely with the banking community “to identify pragmatic solutions to challenges in the financial sector in the best interests of the people of Trinidad and Tobago”.
The statement said that during the meeting, discussions covered a review of the economy, financial system liquidity, as well as issues of foreign exchange supply and demand.
“The Governor indicated that finding a solution to the ongoing problems in the foreign exchange market is a priority. He underscored that a long-term solution could only occur when mechanisms are found to bring demand and supply into equilibrium, but that this is still some way off.
The banks agreed and provided their recommendations for easing some of the problems faced by consumers,” the statement said, adding that Howii, a former finance minister and banker, “committed to considering those recommendations for implementation”.
The Trinidad and Tobago Chamber of Industry and Commerce, in a recent publication titled “Challenges in accessing foreign exchange,” noted that the persistent foreign exchange (forex) shortage in Trinidad and Tobago has become a significant concern, impacting various sectors of the economy.
It said that the forex crunch has tangible effects on both businesses and individuals. Businesses, especially small and medium-sized enterprises (SMEs), struggle to access the necessary foreign currency for imports and international transactions, leading to operational challenges and increased costs.
“Individuals face difficulties in obtaining foreign exchange for travel, online purchases, and other personal needs. This shortage has led to the emergence of unregulated markets where forex is traded at higher rates, further complicating the economic landscape,” the private sector group said.
The CBTT statement said that the BATT representatives inquired as to the way forward with the Unified Payments Interface (UPI) implementation in Trinidad and Tobago and signalled their support in progressing this project in a manner that would be most efficient for the banking system while achieving the potential benefits of this new payment system. Additionally, the meeting addressed essential updates on key regulatory matters.
The statement said that the meeting highlighted the Central Bank’s commitment to open dialogue and constructive engagement on key matters critical to economic stability and development.
Howai is reported as encouraging the banks to work with the CBTT “to explore solutions and make the point that, unless there are negative knock-on effects that are detrimental to the economy, he would like to see flexibility and creativity in the approaches to addressing challenges”.
The statement said the Governor expressed confidence that through continuous engagement and the sharing of ideas and perspectives, meaningful progress can be achieved in several areas.
“The Central Bank will continue to work closely with BATT and its members to ensure that the financial system remains resilient, efficient, and responsive to the needs of the wider community,” said Howai.
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