T&T Forex Window Reopens, US$25Mn Available from Eximbank

• Trinidad and Tobago’s Finance Minister Colm Imbert has announced that EximBank's forex window has been reopened, with a US$25Mn monthly allocation. In a release on November 3, Imbert noted that the decision to resume the window from November 1 was made by the Cabinet after a comprehensive review by his ministry.
• The window was created in 2020 in response to the COVID-19 pandemic and ran until September 2024. The foreign exchange (FX) facility consumed US$30Mn monthly since its inception.
• Additionally, the government will allocate US$25Mn a month to EximBank for the window, a reduction of US$5Mn from the previous iteration, noting that the forex window for export manufacturers is not being adjusted and will remain.
• The government is also reviewing the role and impact of locally manufactured products, which substitute for imports and will consider greater access to forex for inputs for local consumption. "Further details of this aspect of forex distribution will be announced after consultation with stakeholders."
• Business groups have welcomed the reintroduction of a restructured forex window from the EximBank for essential imports and economists have joined them in rejecting the idea of a "floating" foreign exchange solution to the country's shortage.
• Amid continuing tension about foreign exchange availability, there is a broader trend among local banks being forced to adapt due to FX shortages impacting the banking sector over recent years. Most recently, Scotia Bank T&T announced last week that effective December 1, 2024, it would reduce the maximum US dollar spending limit per calendar month on its credit cards to US$5,000 and US$2,000 until further notice and that the ScotiaCard Visa debit card would no longer offer overseas point-of-sale purchases.
• The decision drew public criticism amid outcries from business owners struggling to access foreign exchange.

(Sources: Trinidad and Tobago Newsday & Trinidad and Tobago Guardian)