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Secrecy over new foreign exchange allocation system

Sunday, May 25, 2014

A new foreign exchange allocation system introduced by the Central Bank of T&T (CBTT) last month has changed the amount of foreign exchange each bank—and by extension its specific clientele—has access to. While the CBTT has confirmed the new system, it has refused to divulge any further information on what triggered the changeover or how the new system is expected to improve access to foreign exchange.



This secrecy surrounding the new system comes even as Finance Minister Larry Howai has described it as being less effective than originally anticipated, and on Friday announced an immediate injection of a further US$200 million (TT$1.2 billion) to buoy the failing system. In an e-mail exchange with the Sunday Guardian on Friday night, Howai directed all queries to CBTT governor Jwala Rambarran.


“You should get the details of the new system directly from the CBTT who formulated the system and who manage the system on a daily basis. The CBTT also relates directly with the banks, so the governor would be the one who can best discuss this matter,” Howai said.