T&T Finance Minister Rejects Claims of IMF forex Caution

• Finance Minister Colm Imbert has rejected claims published in certain sections of the media that the government has received a caution from the International Monetary Fund (IMF) on the distribution of foreign exchange (forex).
• In a November 10 statement, Imbert addressed public concerns about difficulties accessing foreign exchange, the government's decision to let the Trinidad and Tobago dollar float in line with IMF advice, and calls for direct government involvement in forex distribution. He also clarified that the decision to reopen a forex window at EximBank for essential imports followed pressure from the business community and a daily newspaper.
• He noted that the recommendation did not appear for the first time in the 2024 IMF Article IV report, as alleged in a daily newspaper report on November 10.
• At a November 5 news conference, Imbert stated that the ministry was in discussions with various chambers of commerce and the Trinidad and Tobago Manufacturers Association (TTMA) about potential changes to the forex distribution system. He explained that the Central Bank relies on an "honour system" when allocating US currency to local commercial banks, which in turn distribute it to customers.
• An alternative would be to allocate specific percentages of this distribution for SMEs (small and medium enterprises), as well as for medical expenses, education, travel, or imports needed by manufacturers.
• In a notice released on November 8, RBC announced a 66% reduction in the forex limits on its personal and business credit cards, effective December 1. Similarly, Republic Bank informed customers last September of changes that took effect that month, including a reduction in the US-dollar limit on its credit cards from US$10,000 to US$5,000 per cycle.

(Source: Trinidad & Tobago Newsday)