With the busy Christmas season in high gear, manufacturers are still having problems accessing foreign currency, Ramesh Ramdeen, CEO of the T&T Manufacturers' Association (TTMA) said yesterday."Yes manufacturers are continuing to have problems accessing FX at this time. The situation has actually worsened for some of our members," he told the T&T Guardian by e-mail.
In a statement last week the TTMA said: "Manufacturers need US dollars to conduct daily business, not to save or hoard. Engaging in hoarding will curtail foreign supplies, which will result in a domino effect on production, output sales and growth of operations. It seems unrealistic that manufacturers would hoard foreign exchange at the expense of destroying their own operations."
The statement was in response to Central Bank Governor Jwala Rambarran who used the occasion of his December 1 monetary policy presentation to address claims by businessmen that there was still a shortage of foreign exchange, even though the Central Bank had injected US$1.7 billion from its reserves for the year so far.
He had said then: "When the money is provided by the Central Bank, the funds are promptly deposited in their foreign currency account and left unused and the noise about not being able to get money for business continues. I do have one tip for businesses trying to get foreign exchange: it helps if you do not conduct business with companies with terrorist links as we have strict laws on Anti-Money Laundering and Combatting the Financing of Terrorism."
Yesterday, Ramdeen said talk of terrorist links is news to him: "If the Governor has such information I think it will be best for him to investigate using his powers available to him or take this information to the relevant authority to investigate. As far as I know this can border on treason and if the perpetrator is found to be guilty he should be penalised accordingly."I do not have any information that any of my members are associated with or involved in any way with members who are involved with terrorist links."
The TTMA CEO also wondered what alleged terrorist links had to do with access to foreign currency."Is there a correlation? Maybe you can asked the governor this question. TTMA vehemently denounced this statement of its members being linked to terrorist groups. And secondly TTMA members continue to have problems in accessing FX to engage in their business operations," he said.
David Edwards, president of the Tunapuna Chamber of Commerce, said the foreign exchange situation has not improved."Earlier this year it was difficult. It eased up and now it is getting difficult again. All of these problems go back to the process instituted by the Central Bank," he said.Edwards said six weeks ago at the launch of the new $50 bill Rambarran had promised the situation would improve but that has not happened.
"The system needs to be re-visited and there needs to be collaboration with the chambers so that there could be relief. If this does not happen we could see this problem going into Carnival," he said.A different view was expressed by Vivek Charran, president of the San Juan Business Association, who said he does not think there is any major shortage of foreign exchange among local businesses at this time.
"There was a period when we felt there was a shortage. However, that has been addressed," Charran told the T&T Guardian."What has been put in place is that the requirements to get foreign exchange have been a bit more stringent, so you have to show some more information regarding what you have. Depending on the amount you may not get it immediately and you may be put into a queue. but generally you tend to get it.
"You may get the money in two applications. They may say that you will get $10,000 today and in a couple days the next part of the money but there does not appear to be that shortage anymore. At least that is my understanding of how things are," he said.
Charran said: "If your business has been operating for some time and they check the account and they figure out you have been applying for a certain amount all the time, then it becomes easier. They see you have a relationship with these suppliers abroad these are the type of items you are bringing in. If your business is new, then they may have to check up on your account."After the initial period where things were scary we do not have that problem. That was earlier in the year," he said.
Charran said companies and businesses that keep the law and pay their taxes don't have to worry about terrorist links.