PM insists Govt won’t bow to pressure: There’ll be no devaluation of TT dollar

The Prime Minister says Government will not bow to “special interest pressure” to devalue the TT dollar. Speaking on the foreign exchange issue for the first time yesterday, the Prime Minister said the pressure to devalue was coming from people who largely have foreign exchange. He said devaluation will increase costs and make those with foreign exchange wealthier.

He made the comments while in the House of Representatives.

Dr Keith Rowley also said the Finance Minister was currently meeting with stakeholders to determine the reasons for the increased foreign exchange demand with a view to arriving at a consensus on the way forward, which may involve “more regulation of the method and manner of distribution” by the banks of foreign exchange.

Couva North MP Ravi Ratiram asked what urgent measures Government planned to implement to address, what he called, the severe restrictions on access to foreign currency.

“The amount of foreign exchange available in the banking system in 2023 to 2024 is about the same available in 2014—that is approximately (US)$7 billion. So there has been no ‘reduction’ in the marketplace of government’s support for foreign exchange. Of this total, the Government directly injects (US) $2.5B per year with the remaining (US) $4.5B acquired by the banks directly from the United States dollar-earning clients.

“However, in 2024, there is clearly an increased demand for foreign exchange due to the growth in the economy and an increase over the years and a taste for foreign goods and for the use of online purchasing,” he explained.

But the Prime Minister said Finance Minister Colm Imbert was working to determine a solution.

“The Minister of Finance is currently meeting with stakeholders to determine the reasons for the increase in demand with a view to arriving at a consensus on the management way forward, which may involve more regulation of the method and manner of distribution by the banks of the Government’s foreign exchange that is injected into the commercial banking system by the Central Bank of T&T on a monthly basis.

“The Minister of Finance has already met with the four largest commercial banks to discuss this matter and will be meeting with business organisations over the next month,” Rowley said.

He also said there was a misalignment between the appetite to spend foreign exchange and the ability to earn it. There has also been increased insistence to mark down the TT dollar.

“We have noticed a deliberate attempt in recent times to put pressure on the Government to devalue the currency. Let me save them from wasting their time today: there will be no devaluation of the currency!” Rowley said to government desk-thumping support.

“The pressure on the Government to devalue the currency is coming from people who have foreign exchange largely! Using their attempt in the country to make this an issue, ignoring the fact that any devaluation could only result in increased costs across the board!” Rowley warned.

“Of course, it will make those with foreign exchange wealthier because they will get more T&T dollars! So to try to pressure the Government to devalue the currency! “We must be the only country in the world where people are demanding to devalue the currency and decrease their wealth from those who have to pay it.

“This is special interest pressure, and the Government will not bow to it!” Rowley declared.

Asked again by Ratiram when the country could see improvements to access foreign exchange, Rowley repeated that Minister Imbert was working with stakeholders. He also urged him against pressuring the Government.

“And the MP’s (Ratiram) business isn’t a foreign exchange earner, and therefore he’s not to come in this House and try to pressure us on that!” he added.

‘Not aware of query’

The Prime Minister also responded to Oropouche West MP Dave Tancoo, who asked about the Privy Council’s judgment in favour of the Auditor General.

Tancoo asked if “given the query by British Law Lord, Lady Simler,” Rowley would advise whether the Finance Minister “will be investigated for his role” in alleged the failure to provide relevant access to documentation preventing the Auditor General from conducting the required audit of T&T’s accounts.

Rowley said, “I am not aware of any query by any British or other Law Lord. And I’m not aware of any role of the Minister of Finance in failing to provide information to the Auditor General.”

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