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Central Bank pumps more US$ into system

 The Central Bank will sell US$75 million to the banking system today as part of what it calls its foreign exchange intervention programme.

 “The timing of this sale is based on the bank’s ongoing analysis of market conditions and consultation earlier this week with foreign exchange traders. This intervention comes 15 days after the bank sold US$100 million to the system on July 2. The total sale of foreign exchange by Central Bank for July 2014, thus far, is US$175 million,” the bank said in a statement yesterday.

In the first half of July inflows of US currency have been low, as expected, given the rate of foreign exchange conversions by energy companies, it added. 

“We anticipate this trend to continue in the latter part of July and into August. The Central Bank is, therefore, expected to continue to provide support to the foreign exchange market, injecting more US currency into the system within the next few weeks,” the bank said.

The total US currency sold by Central Bank to authorised dealers for the year is US$865 million, US$210 million higher than the amount sold for the corresponding period in 2013, it added.

At the end of June 2014, Trinidad and Tobago’s net official reserves stood at US$10,304 million, representing an excess of 12 months of import cover.

Central Bank sources yesterday refuted statements by the Trinidad and Tobago Manufacturers’ Association  (TTMA) their members are not receiving foreign exchange. 

Source said based on the data compiled, 100 TTMA members got a total of US$82.6 million, which was 45 per cent of the bank’s total sales in the last six weeks.

Ten TTMA members received US$41.3 million, half of the amount sold to TTMA’s members.

A source said the TTMA’s complaint was disappointing given the open and frequent communication it has engaged in with business groups. 

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