Repeal the Exchange Control Act

THE EDITOR: US dollars have become increasingly scarce in TT, despite the US dollar being the world’s reserve currency. This shortage is particularly troubling as it seems to disproportionately affect small businesses and individuals, while larger, elite businesses continue to thrive.

These larger businesses, which often import luxury goods and non-essential items, appear to have easier access to US currency, partly due to their connections with banks and finance houses that act as authorised agents under the Central Bank’s policies.

This system creates an imbalance where the average person and smaller enterprises struggle to access foreign exchange, while a select few benefit. There have been concerns raised about potential conflicts of interest, with overlapping directors and shareholders between these elite businesses and authorised foreign exchange dealers.

A repeal of the Exchange Control Act, which grants the Central Bank the authority to manage foreign currency distribution, could help address these concerns and ensure fairer access for all.

Given that the TT dollar holds limited value in international markets, it may be time to consider allowing the US dollar to be used as legal tender in TT. This could help ease the current shortages and allow businesses of all sizes to conduct transactions without undue hardship.

Additionally, there are growing discussions about the potential shift towards a cashless society and the use of digital currencies. While these innovations have merit, it is crucial that citizens retain the freedom to use cash and avoid a system that could limit their economic autonomy.

By reviewing current policies, including repeal of the Exchange Control Act, we can create a more inclusive and balanced system that benefits all citizens.

I encourage fellow citizens to consider these issues and the potential negative impact on their freedoms, both financially and socially.

DR FUAD KHAN

former MP, minister