Support for Soca Warriors leaves

SOME of the nation’s commercial banks yesterday reported a shortage in Euros due to a heavy demand for this currency from Trinidad and Tobago nationals travelling to Germany to support the Soca Warriors. Central Bank Governor Ewart Williams yesterday confirmed this shortage but said this will not harm TT’s foreign exchange system.

Checks by Newsday yesterday revealed that no Euros, which sell at $8TT were available at Port-of-Spain branches of RBTT, Scotiabank and First Citizens Bank. Officials at RBTT and First Citizens hinted that the shortage was connected to the large numbers of persons who were travelling to Germany to support the Soca Warriors who open their World Cup campaign against Sweden in Dortmund on Saturday.

RBTT officials were unable to say when they would have Euros available while their Scotia Bank counterparts indicated that they hoped to have Euros to sell to the public by tomorrow. First Citizens officials in Port-of-Spain hinted that some of the bank’s other branches may still have some Euros.

Contacted yesterday, Williams told Newsday he was aware that some commercial banks were experiencing shortages of Euros and this could be linked to the large numbers of persons going to Germany for the World Cup. The Governor said those shortages had nothing to do with the Central Bank because it was the commercial banks which decided the volumes and types of foreign currency which they held.

He said US dollars were the largest amount of foreign currency held by any commercial bank given the high demand for this currency by business people and tourists. In contrast, Williams said banks were unlikely to keep large amounts of foreign currency such as the Euro or Japanese Yen since there has not traditionally been a high demand for them in TT.

Admitting that local demands for the Euro have changed since TT qualified for the World Cup, Williams said the Central Bank does not have Euros to sell to the banks. He explained that the Central Bank did not sell foreign currencies in cash to the banks but uses other measures such as electronic wire transfers to make foreign currency available to the banks.

Stating that banks may increase their sales of US dollars to Germany-bound Trinis who could subsequently convert that currency to Euros, Williams said such sales were “a drop in the bucket” and would not upset the foreign exchange system. Yesterday banks also reported a shortage of US dollars.

The Governor added that he has received no information to suggest irregularities in the supply of US dollars in TT.

Bankers Association president Larry Howai supported Williams position and said credit cards and travelers cheques could be used by TT nationals in Germany to purchase whatever Euros they needed.