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ADM CEO: Forex market still tight
Businesses are still getting problems to obtain foreign exchange, CEO of ADM Import and Export Distributors Limited, Balliram Maharaj said yesterday. He is suggesting that the Central Bank move toward a more flexible market clearing system to boost confidence in the foreign exchange supply because there are implications for the country’s credit rating.
Maharaj commended the Central Bank’s recent efforts at modifying the foreign exchange allocation system, noting that since then three of T&T’s largest bank’s have given assurances that there will be no shortage of foreign exchange. “I am encouraged by the recent moves by the Central Bank and remain cautiously optimistic that the recent adjustments would serve to improve the tightness currently being experienced,” he said. “I would like to suggest that the business community monitor the levels of foreign exchange liquidity over the course of the next three months for signs of improvement.”
Maharaj said following a meeting convened by the T&T Chamber on June 6, the Central agreed to intervene and inject sufficient liquidity into the foreign exchange system to meet the demand.
He said: “Additionally, there was a commitment by the Central Bank Governor to inject US$30 million for foreign travel and university fees.” However, he said, there are still signs that the foreign exchange market is relatively tight.