[UPDATED] Imbert: Bank of Jamaica halt of TT$ exchange no currency crisis

FINANCE Minister Colm Imbert and the Central Bank said a decision by the Bank of Jamaica (BOJ) to temporarily suspend exchange of Trinidad and Tobago dollars is no currency crisis.

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

The BOJ said it was because of 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 because 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.

In a tweet on Wednesday, Imbert said, "The BOJ has temporarily suspended acceptance of TT dollars to review its arrangement with our CBTT (Central Bank of TT). The amount traded in TT dollars in Jamaica equals only US$4,000 per month.

He added that one daily newspaper describing this small sum as evidence of a currency crisis was irresponsible.

In a second tweet, Imbert said, "All this drama over such a small amount of forex (foreign exchange), making a mountain out of a molehill, creating anxiety for no reason."

In a statement, the Central Bank said there was no reason for anyone to be concerned about the temporary suspension of the exchange of TT dollars by the BOJ.

"Central banks in the Caribbean region have a longstanding arrangement to redeem each others' currency."

The bank said it would periodically send to the BOJ the Jamaican dollars it would have collected over time. In turn, the BOJ will credit its account with the equivalent in US dollars.

"This arrangement is reciprocal and has worked well."

The bank said, "The amounts collected are generally small, related to amounts that governments may have collected from individuals and companies in court cases, embassies, some taxes, etc.

"For the most part, central banks make very limited over-the counter exchanges from the public."

Currency arrangements are constantly being reviewed and discussed among the staffs of the banking departments of various central banks.

The bank said, "This is, among other things, to keep up with new technological developments, streamline operations, including towards reducing the costs associated with repatriating banknotes and staving off potential avenues for money laundering and other criminal activities.

With respect to this matter, the bank said, "The BOJ and CBTT considered that it would be appropriate to have the BOJ suspend its over-the-counter public exchanges of TT dollars.

"This is in line with the current CBTT practice of not engaging in such exchanges with the public, either for Jamaican dollars or any other currency."

The bank promised it will continue to "co-ordinate with other regional central banks in currency operations and other areas to improve the welfare of Caribbean citizens."

This story has been adjusted to include additional details. See original post below.

FINANCE Minister Colm Imbert said a decision by the Bank of Jamaica (BOJ) to temporarily suspend exchange of TT dollars is no currency crisis.

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.

In a tweet on Wednesday, Imbert said, "The BOJ has temporarily suspended acceptance of TT dollars to review its arrangement with our CBTT (Central Bank of TT). The amount traded in TT dollars in Jamaica equals only US$4,000 per month.

He added that one daily newspaper describing this small sum as evidence of a currency crisis was irresponsible.

In a second tweet on this matter, Imbert said, "All this drama over such a small amount of forex (foreign exchange), making a mountain out of a molehill, creating anxiety for no reason."

In separate statements on Monday, the Greater San Fernando Chamber of Commerce, TT Chamber of Industry and Commerce and the Confederation of Regional Business Confederations called for clarity on this matter.