Central Bank should step in

Trinidad is earning more US dollars than it is spending through the sales of oil, gas, steel, manufactured goods up the islands, and direct foreign investment.

I would like to suggest to the Central Banking authorities they work with the commercial banks to limit the sale of US dollars to earners of foreign exchange. These companies should be easy to identify and in the national interest, some pressure should be put to ensure that the bulk of their US dollar revenues are returned to TT to be used to settle foreign obligations when required.

What presently happens is that a considerable percentage of foreign currency earned by companies operating in TT never returns to this country as it is kept in foreign banks. These same local companies then go to the commercial banks to requisition the artificially limited supply of foreign currency to pay their overseas bills, heightening the shortage of US currency.

There must be some action that the Central Bank can take to regularise this anomaly. The TT dollar should be appreciating in value, and not heading for a depreciation as seems to be happening. Currency appreciation can, among other things, reduce the cost of living for the majority of Trinbagonians and stem the outflow of capital as more confidence is generated in the capability of the local authorities to effectively manage the foreign exchange stock.

If the government wants to score some political points this is the kind of issue it should address as soon as possible, in collaboration with the Central Bank.

It might also help to ease the pressure brought on by really poor decisions like Toruba, President’s grounds, Red House, White House, inflationary effects of government over-spending, Blimps etc.

Christian Rodriguez

Petit Valley