First Citizens’ decision to cut US-dollar credit card limits will hurt SMEs immediately and hard, analysts and SME businesses said Friday, as they commented on the most recent lowering of US-dollar spending limits by a local commercial bank.
From March 10, 2026, First Citizens’ personal cardholders will face reduced US-dollar spending limits. The monthly US dollar limit on the bank’s Mastercard standard card decreases from US$6,000 to US$2,000 and its Visa Platinum customers will now operate with a US$3,500 cap per billing cycle, down from US$8,000 in some cases.
The revisions apply only to international transactions, including online purchases and overseas point-of-sale spending, while TT-dollar limits remain intact. Business and corporate cards are unaffected, at least for now.
Other local commercial banks have already tightened spending limits on credit cards, leading to a shift in usage. First Citizens held its line longer than most. Now it, too, has adjusted, said the bank's Group CEO, Jason Julien, who framed the decision as measured rather than reactive.
“Yes, effective March 10, 2026, we will be implementing adjustments to the US dollar spending limits on all personal credit cards. While First Citizens has deferred this measure for as long as practicable, the revised limits are necessary to align more closely with prevailing market conditions. Notably, the bank’s US dollar limits will remain above the current market average.
“As expected with any change of this nature, reactions have been varied. Many have acknowledged the broader market realities influencing foreign exchange availability,” Julien said.
Economist Dr Vaalmikki Arjoon places the development in a wider macroeconomic context.
“This is not an isolated incident and it is fundamentally a response to persistent foreign exchange imbalances in Trinidad and Tobago’s economy. The domestic foreign exchange market remains structurally constrained due to lower energy production relative to historical peaks, uneven US-dollar inflows and consistently high demand.”
Arjoon argues the issue is supply and demand plain and simple.
Lower gas output compared to boom years, combined with heavy import dependence, online spending, travel demand, and external debt servicing, have left the system under sustained pressure, Arjoon said.
“The result is more rationing by the banks because supply has tightened relative to demand. It is therefore a liquidity management decision aimed at aligning potential US-dollar outflows with available inflows.”
For small and medium-sized enterprises (SMEs) the implications are immediate.
“These lower limits constrain working capital flexibility and may delay payments for inventory and inputs, potentially disrupting supply chains and raising operating costs.”
Many SMEs rely on personal and small business credit cards to pay overseas suppliers, subscription services, freight charges, software licences and digital advertising. With limits cut, some operators are splitting transactions across multiple cards. Others are turning to informal channels at significantly higher exchange rates. In extreme cases, business owners ask employees to use their personal forex allocations to complete transactions.
The Chaguanas Chamber of Industry and Commerce sounded the alarm in a statement on Friday. Chamber president Baldath Maharaj described the reduction as “distressing but perhaps inevitable,” noting that once other banks tightened limits, additional demand shifted toward First Citizens.
“For the SME’s that define the Chaguanas landscape, credit cards are essential tools used to pay for inventory and shipping. When this purchasing power is reduced, businesses will be forced to source goods at much higher prices.”
He warned of a cascading effect on employment if margins are further compressed.
Arjoon also introduces a more uncomfortable dimension: commercial banks are private institutions with a fiduciary duty to maximise shareholder returns.
Part of that strategy often includes holding foreign assets, such as US Treasuries, corporate bonds, money market instruments, and equities, which require US-dollar funding. Some institutions, he notes, maintain net long US-dollar positions where foreign-denominated assets exceed foreign liabilities by close to or above US$1 billion.
That reality prompts a macro-financial question.
“In a foreign exchange-constrained economy, should part of those net foreign positions be temporarily redirected toward meeting domestic FX demand? This is not a permanent fix, but it could partially ease some of the burdens until gas production increases in 2027 or 2028.”
Julien confirmed the bank continually evaluates product and liquidity options, including proposals such as a US-dollar debit card linked directly to customers’ US-dollar accounts.
“Enabling customers to access and utilise their own foreign currency balances can be beneficial, and solutions of this nature form part of ongoing strategic discussions. However, any such initiative must be assessed holistically, taking into account regulatory requirements, operational considerations, and broader market dynamics.”
He stressed that credit card usage represents only one component of total foreign exchange demand and that the bank remains committed to “sustainable and balanced solutions.”
Finance Minister Davendranath Tancoo has previously indicated that a review of the foreign exchange allocation framework forms part of a broader reform programme. That includes reassessing the essentials list, finalising transfer pricing legislation, and examining foreign currency holdings within the private banking system.
He has pointed to approximately US$4 billion in foreign currency deposits held by commercial banks, arguing that forex exists within the system but must be better allocated.
A former finance minister, who requested anonymity, defended the banks’ caution and argued that forward-looking liquidity management is rational given upcoming external obligations and limited new revenue streams.
“The bank is doing a little bit of forward thinking because they know that the foreign exchange crunch is coming.”
He questioned the sustainability of expanding fiscal deficits in an environment where foreign exchange earnings remain weak and warned that SMEs will feel the pressure first.
“It’s going to impact all the small and medium-sized enterprises who are looking for money to purchase their goods abroad.”
Arjoon returns to fundamentals. Credit card cuts, he insists, are symptoms, not causes.
“Reduction in allocations is a symptom and reaction to the structural imbalance rather than an isolated banking decision. Sustainable relief will require strengthening foreign exchange supply through increased energy production, export diversification, improved FDI inflows, and more efficient allocations in the foreign exchange market.”
In other words, the pressure will persist until the country earns more US dollars than it spends.
For consumers, the cuts land far from abstract policy debates. They translate quickly into postponed plans, higher costs and tighter personal margins.
Michelle Thomas, who runs a small online retail business, described the new limits as another operational hurdle.
“I use my credit card to pay for software subscriptions, freight charges and advertising. When you cut the limit like this, it slows everything down. Payments get delayed, and suppliers don’t wait. It affects cash flow almost immediately.”
Shelly Griffith, a frequent traveller with family overseas, views the reduction as yet another narrowing of personal choice.
“It’s not luxury spending. Flights, accommodation, and even basic online purchases all require US dollars. With these limits, you start deciding what you simply can’t do anymore. It feels like your financial freedom keeps shrinking.”
For Mark Joseph, who imports small quantities of equipment for resale, the impact is more blunt.
“I used to bring in stock every month. Now I’ll have to wait two or three months just to build up enough room on the card. That means fewer sales and higher prices for customers. In the end, everybody pays.”
