[UPDATED] Howai: ‘Small man’ being considered amid forex plan

CENTRAL Bank (CBTT) governor Larry Howai says measures are being actively examined to address the foreign exchange (forex) shortages in Trinidad and Tobago.

He gave the commitment while speaking at a media engagement event at Central Bank on September 4.

With more than 65 per cent of TT’s forex earning coming from the energy industry, Howai warned that ongoing geopolitical developments can adversely impact international energy commodity markets.

He said this can directly affect domestic foreign currency inflows.

His comments come on the heels of the US killing 11 suspected Venezuelan drug traffickers in a missile strike on their boat in the Caribbean Sea.

Prime Minister Kamla Persad-Bissessar’s open support for the move also prompted a warning, by criminologist Darius Figuera, that she risked entangling the country in dangerous US-China geopolitical tensions.

Howai said the measures being considered include trying to influence forex consumption patterns in conjunction with legislative changes.

He was unable to offer a timeline as he said the measures were still being “fleshed out.”

He said he was also trying to get feedback from the public at large on some of the planned policy measures.

“Sometimes you sit here in an ivory tower and you come up with ideas that sound great, but how it impacts the small man is what you have to consider.

“In fact, the way it impacts a small man may result in you not getting the results that you were expecting because the behaviours of the people change in a way you didn’t expect. Therefore the outcomes is different to what you have projected.”

“So yes, we are bringing these measures, but no, I haven’t totally fleshed them out.”

Hesitant to describe the issue as a “crisis,” Howai said TT was in a much better place than many other countries regarding forex issues.

He suggested the problem appears heightened because of TT’s high forex consumption pattern.

Credit card usage accounted for US $2.3 billion of the US$5.899 billion in forex spending last year.

Retail and distribution companies and the energy industry had the second and third largest spends with US$861 million and US$823 million respectively.

“We have some pretty high consumption patterns in TT. That is reflected when you go into many of the stores.

“It does well for us, we have choice, our businesses do well and so on. But other countries have a much bigger problem than we have.

“Yes, we do have shortages and so on, but over time, needs get met. They may not get met right way, but needs do get met.”

The automobile industry was the next highest forex consumer with a spend of just over U$300 million.

Howai said he expected changes in forex issues to occur gradually, perhaps from as early as the first quarter of 2026, as some measures announced in the budget will only become law when the Finance Act is passed in parliament.

“I think if we introduce some of the measures that we would like to introduce, plus do the additional things which I’m sure the ministry will announce when they read their budget…

“I expect those will start to increase the level of foreign exchange available. It’ll be a lot easier.”

He also revealed that the common use of digital payment apps such as Zelle, CashApp and Apple Pay is on the horizon.

“That is a high-priority area for us,” Howai said, before noting there are already some cash apps such as WiPay available.

He added, however, that opening the market to other apps will require proper legislative frameworks to minimise instances of fraud.

“Fraudsters sit everyday figuring out how to do more fraud. So we need to make sure we have the right type of legislative framework so that when you catch the people you also have penalties you can apply.”

This story was originally published with the headline Howai: Forex measures being 'fleshed out' and has been updated to include additional details. See original post below.

CENTRAL Bank governor Larry Howai says measures are being actively examined to address the foreign exchange (forex) shortages in Trinidad and Tobago.

He gave the commitment while speaking at a media engagement event at Central Bank on September 4.

He said the measures being considered include trying to influence forex consumption patterns in conjunction with legislative changes.

Howai was unable to offer a timeline as he said the measures were still being "fleshed out."

Hesitant to describe the issue as a "crisis," Howai said TT was in a much better place than many other countries regarding forex issues.

He also revealed that the common use of digital payment apps such as Zelle, CashApp and Apple Pay is on the horizon.

"That is a priority area for us," Howai said, before noting there are already some cash apps such as WiPay available.

He added, however, that opening the market to other apps will require proper legislative frameworks to minimise instances of fraud.