Pressure On Trinidad's Peg Will Continue
- Fitch Solutions maintains its expectation that the Central Bank of Trinidad & Tobago (CBTT) will likely devalue the Trinidad & Tobago Dollar (TTD) in late 2019 in response to capital outflows and hard currency shortages.
- Accordingly, Fitch expects the TTD to average TTD$7.50/USD in 2019, down from its current spot of TTD6.78/USD.
- There are substantial upside risks to Fitch’s forecast as the CBTT has proven committed to using the managed peg to combat pass-through and wage inflation.
(Source: Fitch)