For the third time this month, the Central Bank has sold a large amount of US currency to the local banking system.The bank said its sale yesterday of US$100 million "was based on lower than expected US dollar conversions from energy companies and increased seasonal demand from the business community for foreign exchange."
Three weeks ago, the Central Bank said it was embarking on a "strategically timed programme of foreign exchange interventions" to ensure a predictable supply of foreign exchange in anticipation of increased demand from the business sector in the lead up to the Christmas season.The total amount sold by Central Bank to the financial system for the year so far amounts to US$1,390 million–almost 25 per cent of the total foreign exchange supply to the market.
The bank said T&T's net official reserves currently stand at US$11,299 million, representing more than one year's import cover."Central Bank continues to closely monitor the domestic foreign exchange market and is once again assuring the business community, we will continue to act decisively to meet any possible shortfalls in supply," the bank said in a media statement yesterday.