PM, who has suggested devaluation?

THE EDITOR: This is the same Prime Minister who, during the 2020-2021 covid19 pandemic, staunchly advocated for a complete economic shutdown, which decimated small businesses, increased job losses due to a draconian lockdown, and prevented nationals from returning home, leaving many stranded and destitute abroad.

All of this stemmed from an exaggerated fear of “bodies in the streets.” Now, he reappears with the statement, “No devaluation of the Trinidad currency!” What utter nonsense. Who has suggested devaluation to him? That statement is not only misguided, but also a clear reflection of incompetent decision-making.

All that is being requested is the repeal or amendment of the archaic Exchange Control Act to allow for an increased supply of foreign currency into the economy.

Does the Prime Minister still wish to act as the controlling figure in the nation’s currency market, being the only supplier of foreign exchange? Is it his goal to be the master controller of forex?

The current situation, governed by the act, restricts the entry of foreign currency through authorised dealers and limits the import of cash and cash-like deposits.

The Prime Minister’s suggestion that online shoppers and those with US dollars abroad are advocating for devaluation to profit by bringing back US dollars to increase their volume of TT dollars is baseless. Does he not realise that the TT dollar holds no value internationally and is not accepted abroad? Such statements expose the short-sightedness of his approach, which only serves to contract our economy further.

As for online shopping and foreign goods, even with customs duties and transport fees, foreign products are often more diverse and more affordable than those available here in TT.

It is time for a broader, more international perspective:

1. Stop playing the role of the forex gatekeeper.

2. Let the free market determine the outcome.

3. Repeal the archaic Exchange Control Act.

4. Cease the ongoing regulation and criminalisation of foreign exchange transactions among the public.

DR FUAD KHAN

former minister

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