Central Bank boosts market with US$75m
The Central Bank has injected another US$75 million into the financial market, amid mounting complaints by businessmen of a shortage of the currency.
According to a news release from the Bank yesterday, the injection was made yesterday and was timed to support the foreign exchange market.
The Bank said the injection is expected to preempt any significant tightening in light of the anticipated lower volumes of US currency conversions by energy sector companies this month.
It added that for the year so far a total of US$940 million has been sold to authorised dealers.
The Bank assured it will continue to provide further support to the domestic foreign exchange market over the next few weeks.
Contacted yesterday, the Trinidad and Tobago Manufacturers Association (TTMA) which has been voicing concern about members’ inability to access sufficient foreign exchange, declined to comment.
The Express understands, though, that the Association is expected to meet with the Central Bank Governor on the matter today.
Meanwhile, president of the Downtown Owners and Merchants Association, Gregory Aboud, said he was not aware of the latest injection yesterday.
He said as far as he was aware, the foreign exchange supply continues to be tight and this persisted all of last week.
“While we appreciate the intervention again of the Central Bank, we feel obligated to point out that the management of the rate of exchange may be directly related to repeated bouts of scarcity,” he said.
“The Central Bank should really be doing more either to keep the system properly injected with US dollars or to admit finally whether or not our fixed rate has become unmanageable,” Aboud added.
The DOMA president said the constant peaks and troughs are adding uncertainty to the country’s economic climate.