Prime Minister Kamla Persad-Bissessar has launched a blistering critique of T&T’s foreign exchange system, promising legislation that would compel the Central Bank to disclose all forex allocations.
While transparency is laudable, her words expose the deeper malaise afflicting the country’s economy—one that cannot be solved by legislation alone.
The Prime Minister did not mince words. She accused the Export-Import Bank of T&T Ltd (EximBank) of “failing to function properly and fairly” and described commercial banks as operating like forex cartels that are “strangling local businesses.”
These accusations follow the publication on the weekend of private EximBank data showing that pharmaceutical and poultry companies have dominated forex allocations by that institution over the past five years.
The implication is clear: local businesses outside favoured sectors struggle to access the foreign currency necessary to import raw materials, machinery, or other essentials for growth.
Yet, even as Mrs Persad-Bissessar pointed fingers, Central Bank Governor Larry Howai presented a counterpoint. On September 4, he revealed that US$600 million had been allocated to EximBank — roughly 27 per cent of the Central Bank’s US$2.2 billion intervention in the forex market. Howai also asserted that there was “no evidence” of a forex cartel, directly contradicting the Prime Minister’s claims.
This clash of perspectives underscores a broader problem: the system is opaque, but the solution is not as simple as legislative disclosure.
Indeed, transparency alone is unlikely to resolve T&T’s persistent forex crisis. The real issue lies in the structural weaknesses of the economy. Heavy reliance on imports has created a voracious demand for foreign currency, while domestic production remains limited. Until the country reduces its dependence on imported goods and builds the capacity to earn more foreign exchange, the cycle will persist.
One clear path forward is to incentivise domestic manufacturing and value-added industries. Pharmaceutical and poultry companies may have cornered forex allocations, but other sectors — particularly agro-processing, light manufacturing, and technology — hold untapped potential to earn foreign currency. By diversifying the sources of forex earnings, Government can relieve pressure on the market and give local businesses a fairer chance to thrive.
At the same time, export-oriented strategies must be pursued more aggressively. T&T is rich in talent, resources, and entrepreneurial potential. The country must identify products and services that can compete on international markets and back them with appropriate policy support. Forex scarcity will only ease when more dollars flow in, not when allocations are simply made more transparent.
Legislation to reveal forex allocations may satisfy the public’s desire for accountability, but it does not address the root causes of the crisis. Blaming EximBank or accusing banks of cartel-like behaviour is politically satisfying, yet it risks diverting attention from policies that actually create economic resilience. The country needs a strategy that combines transparency, domestic production, and foreign exchange generation — not just another law.
T&T’s forex woes are symptomatic of a deeper structural imbalance. Transparency is necessary, but it is far from sufficient. Government must therefore move beyond pointing fingers and focus on real solutions: producing at home, exporting abroad, and creating a system where local businesses are empowered rather than strangled by scarcity. Only then can the promises of legislation translate into tangible relief for the economy.
