TT dollar losing strength?

The TT dollar, although relatively stable against the US dollar over the last two calendar years, has undergone a steady depreciation compared to other major currencies, the newsletter said. “As at December 2003 the TT dollar had lost 20 percent of its value relative to the British pound, 21 percent to the Canadian dollar and 35 percent to the Euro,” it stressed.

The TT dollar is linked to the US dollar and accordingly has been losing strength to other major  currencies in line with a similar trend in the US dollar. One implication of this is that Trinidad and Tobago’s exports to Europe, Canada and Great Britain have become cheaper to consumers of those countries while imports of goods and services from those countries have become more expensive to consumers of this country. The country’s net foreign reserves holdings however, continue to rise, reaching US$2.3 billion in October 2004 or some six and a half months of import cover.