THE EDITOR: We need to break down the discussion of the suggested devaluation of the TT dollar to the US dollar to the lowest level for all of us to understand it and understand its real impact on citizens.
When the TT dollar is devalued against the US dollar, it will mean we will all have to pay more TT dollars for the US dollar. It further means that this increased cost for the US dollar will be passed on in higher prices to consumers. Who feels this more? It’s the poor and middle class. Businesses will not absorb these increased costs.
This will not be a temporary measure. When last have we heard of a country’s dollar being strengthened and getting back to its lower exchange rate? Almost never. It means we will have to live with this increased exchange rate until it increases again.
If the objective is to get more US dollars to run our affairs, then the main principle should be to earn more US dollars via international trade of goods and services and not to make it more expensive to reduce demand for it.
We already are being taxed relatively a lot and there are further taxes coming. To devalue the TT dollar will drive prices up and make it more difficult for probably one million of the 1.3 million people in the country.
Let us urgently, seriously and collectively think of how we can earn more US dollars instead and act on it quickly rather than just it being a talk shop. We have been doing this for too long and that is why we are always in this mess.
IAN RAMDHANIE via e-mail