PM: Forex conversations continuing with Central Bank, BATT, banks

PRIME Minister Stuart Young has said government is committed to continuing conversations with the Central Bank, Bankers Association and the commercial banks on the issue of foreign exchange (forex) allocation.

He gave this commitment at a post-Cabinet news conference at Whitehall on March 27.

On March 25, Young and Finance Minister Vishnu Dhanpaul held discussions with representatives of these groups at the same venue. A former high commissioner to the UK and former finance ministry permanent secretary, Dhanpaul replaced Diego Martin North/East MP Colm Imbert as finance minister in a Cabinet reshuffle on March 17.

Imbert was appointed as public utilities minister on the same day.

Young repeated the ability of ordinary citizens to access forex is an issue he identified early in his tenure as prime minister, as something which needed to be urgently addressed. Government, he continued, needed to get a better understanding of this matter because it is not directly involved in the allocation of forex.

Young described the March 25 meeting as productive.

"We had very open and frank conversation. I made it known that this government was concerned about the average citizen. Why is it that the average citizen cannot go to the bank and get access to a reasonable amount of US forex and how is it being allocated."

Young said government accepted the supply of forex is less than it was in previous years. "Some of the items that came up for discussions is the gray market that exists out there. Some of the illegal activity that may be taking place out there that affects forex."

He said, "Another matter we discussed was the (commercial) bank charges and this is something that is not unique to Trinidad and Tobago "

Young disclosed he discussed this issue with Barbados Prime Minister Mia Mottley while they were in Jamaica for separate bilateral talks with US Secretary of State Marco Rubio on March 26. "She has also tackled this issue."

Mottley is the current Caricom chair.

Young said, "Bank charges are affecting all of us as citizens." He repeated, "One of the main people that are affected by this are average citizens because they feel the pinch the most." Young said, "I made it very clear to the bankers what our views are on it it."

He added the bankers' representatives identified investment in infrastructure and upgrade of software as contributing factors to these charges. Young said, 'Well I said okay, as a citizen I see that you are closing down retail banking and shrinking your retail banking services which means a reduction in cost."

He added banks are moving from paper to digital transactions which also refers to cost reduction by the banks. Young asked why was the efficiency of online services not leading to a reduction in bank charges to customers. He asked the Central Bank, Bankers Association and commercial banks to continue their conversation with Dhanpaul. and the Finance Ministry.

"I told them we would be meeting again two Wednesday now (April 9) because the government intends to address this situation." Young said, "We have certain powers in law...and I am hoping that we don't have to reach to that stage."

He told the media during the meeting, "a certain possibility came up which I immediately pounced on and said let us explore that."

Young said, "I would like to find that solution. We are not going to get more forex. So if you are earning US$10 million that is what we have to distribute...as equitably as possible amongst the population." He added the Central Bank and Finance Ministry have been asked to look at the various options and discuss them at the next meeting.

"As we progress, I will always come and report." Young said floating the TT dollar was not discussed in the meeting.