Growth in local banks’ foreign exchange purchases
During 2004, commercial bank purchases of foreign exchange from the public grew by 17.9 percent to US$2,441.3 million from US$2,070.4 million in 2003, the Central bank’s annual report said. "The growth in purchases reflected a higher level of inflows from companies in the energy sector," it was noted. There was also an increase in sales of foreign exchange by 13.7 to US$2,984.2 million from US$2,625.1 million in the previous year. Activity in the domestic capital market by regional issuers remained relatively strong, accounting for US$280 million compared with US$428 million in the previous year. The Central Bank sold a total of US$400 million to the market in 2004, compared with US$505 million in the previous year. The US dollar traded in a relatively narrow range. The selling rate averaged TT$6.2990 compared to TT$6.2951 in 2003. There was greater fluctuation in the buying rate which averaged TT$6.2441 in the review period compared to TT$6.2312 in the previous year. Notwithstanding sales to the market, the net official foreign reserves held by the Central Bank rose to US$2.976 billion, up from US$2.242 billion at the close of 2003, equivalent to 6.9 months of prospective imports of goods and services.
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"Growth in local banks’ foreign exchange purchases"