Businesses want more info on Bank of Jamaica halting its $TT exchange

BUSINESS groups on Monday asked why the Bank of Jamaica (BOJ) took a decision last Friday to temporarily suspend the exchange of TT dollars at its banking counter.

In a statement on November 3, the BOJ announced the temporary suspension would take effect from Monday.

The BOJ said it was owing to a review of the existing arrangement for the repatriation of TT dollars.

The suspension will remain in effect until further notice.

The bank advised people seeking to exchange TT dollars to take note of the development and plan their currency exchange accordingly.

In an further statement on Monday, the BOJ said the temporary suspension was owing to the fact that the TT Central Bank "to which this currency is repatriated, has suspended arrangement for the repatriation of TT dollars until further advised."

The BOJ promised to advise of any further developments.

Central Bank officials were unavailable for comment on Monday.

Greater San Fernando Chamber of Commerce president Kiran Singh said the development came as a surprise to the business community.

"This decision, regardless of how temporary, can have an immediate negative impact on confidence in the TT dollar."

Singh said, "Although significant trade payments are made in US dollars, if reasons are not forthcoming as to why such a decision was taken, it can have further deleterious effects on our economy."

He added, "Clarification should be sought at the inter-governmental levels on why such a sudden decision was implemented."

In a statement, the TT Chamber of Industry and Commerce said the matter needed "further explanation and clarification."

While it did not have sufficient information on the matter, the chamber was certain that Government would contact its counterparts in Jamaica to resolve the matter.

The chamber respected the decision of the BOJ as the Jamaican government's banker and financial agent.

In a statement, the Confederation of Regional Business Chambers (CRBC) also called for clarification on the matter.

The CRBC wondered if the temporary suspension was owing to a large number of local businesses attempting to purchase US dollars, by using TT dollars to purchase Jamaica dollars at a competitive rate "since this currency is in free float."

The CRBC was concerned whether the development could have implications for Caricom intra-regional trade and the workings of the Caricom Single Market and Economy (CSME).

CRBC president Vivek Charan said, "I am hoping the decision by the BOJ does not affect our trading relations with Jamaica nor the balance of Caricom as a whole."

He suggested that the Prime Minister and Finance Minister Colm Imbert hold bilateral talks with their Jamaican government counterparts to find "an immediate amicable solution to resolve this problem."