SOME business groups are calling for clear guidelines regarding possible solutions to the distribution of foreign exchange (forex).
At a post-Cabinet news conference at Whitehall on March 27, Prime Minister Stuart Young committed to continuing conversations with the Central Bank, the Bankers Association (BATT) and commercial banks on the issue of forex and its local allocation.
Representatives of these groups met with Young and Finance Minister Vishnu Dhanpaul at Whitehall on March 25. Young described the talks as productive.
He asked the Central Bank, Bankers Association and commercial banks to continue their conversation with Dhanpaul. and the Finance Ministry.
“I told them we would be meeting again two Wednesday now (April 9) because the government intends to address this situation.”
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Young said he asked the Central Bank and Finance Ministry to explore possible solutions to this issue.
In a WhatsApp comment on March 28. Greater Chaguanas Chamber of Commerce President Baldath Maharaj said the chamber wanted "a clear and structured guideline outlining which businesses qualify for forex allocations and the criteria used for distribution."
He added, "There must be full transparency in the allocation process to ensure fairness and accessibility for all sectors, particularly those most dependent on forex for sustainability and growth."
The chamber, Maharaj continued, acknowledged TT does not have an an unlimited supply of forex and the complexities involved in managing its distribution.
"However, businesses continue to struggle with limited access, which directly impacts operations, imports, and overall economic activity."
Maharaj said, "We cannot continue to allow banks to apply arbitrary criteria that effectively monetise the sums provided to them, increasing their profitability at the expense of businesses." He accepted financial institutions have a role to play.
But Maharaj added, "There must also be a level of social responsibility in how forex is distributed to ensure that businesses, particularly small and medium enterprises (SMEs), are not unfairly sidelined."
This is not simply a matter of rationing forex. He said, "The government must clearly outline what steps are being taken to increase US dollar inflows to meet the growing demand."
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A long term, sustainable solution, Maharaj continued, is necessary to ensure businesses can operate efficiently and remain competitive.
"We cannot allow Trinidad and Tobago to become the laughing stock of the Caribbean due to our persistent forex challenges while other nations in the region successfully manage their reserves and inflows."
Maharaj said the private sector is prepared and willing to collaborate with government and the financial institutions but there must be a clear commitment to implementation
"The business sector needs stability, predictability, and fair access to foreign exchange to drive economic growth and protect jobs. We stand ready to collaborate on structured policies that ensure fair access for all businesses, not just a select few."
In a statement, the Confederation of Regional Business Chambers (CRBC) said, "One can understand that these talks are at a delicate stage, but the advanced solutions cannot be fully conclusive unless the representative business organisations, including the CRBC are invited to make an input regarding the present discussions."
The CRBC claimed the banking sector operates like a cartel with an oligopolistic structure and has been practising a type of banking that have been exploiting citizens for many years.
"This needs to change. Banking reform, including putting a robust legislative agenda in place to institute and action these reforms are an urgent priority for any meaningful adjustments to take place that can be viewed as tangible."
The CRBC suggested Young think through a well-crafted strategy to attract foreign investment to TT and government work with the Central Bank to develop monetary policies that stabilize the currency and manage inflation effectively.
Greater San Fernando Chamber of Commerce president Kiran Singh said Young has shown he is serious about solving the forex crisis. He was also heartened by the involvement of Dhanpaul, a former Finance Ministry permanent secretary, in this matter.
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"We are of the opinion that the Central Bank and commercial Banks are primarily responsible for forex disbursement must be met with first."
Singh said after those initial discussions, business chambers should be invited to voice their opinions and suggestions.
"Our expectation is to see a new schedule for disbursement of forex focused especially on the SME sector."
