Central Bank governor: Things can get better this year

He was speaking during the launch Tuesday of the Bank’s Fiscal Stability Report for 2016 at the Eric Williams Financial Complex, Port of Spain.

“This takes time to sort out.

We are not there yet.

“Over time and with concerted and coordinated policies we (can overcome) but we still have some way to go,” he said.

Hilaire said there were three criteria that need to be coordinated to return the system to a situation of balance: fiscal action; structural action; and monetary policy.

The bank’s priority, he suggested, is to minimise volatility in the market, through regular cash injections every two weeks to prop up supply shortfalls.

The bank did not target a certain level of the exchange rate, he said, but rather considered the level of reserves, market information, foreign exchange demand, and possible outlooks to determine the level of its intervention.

Responding to questions about the allocation of foreign exchange within different sectors, Hilaire said there was a gap in balance of payment data.

He also said the bank does not have exchange controls, so they cannot direct commercial banks on their distribution schedules, nor insist that foreign exchange be given to specific entities or earners.