Forex furore

ONE YEAR ago, Minister of Finance Colm Imbert pledged to hold discussions on “the most appropriate policy for the allocation, management and distribution of foreign currency, as well as strategies to increase repatriation.”

Today, the “discussions” are alive and well.

But the “policy” seems outstanding still, based on the way the government has found itself on the back foot on this issue in recent weeks.

On October 29, in response to a media report, Mr Imbert issued a statement disclosing that a special forex window administered by the Eximbank, which has been accessed by 110 distributors since it was established in April 2020, was “under review.”

Apparently, importers had been privately made aware that this facility, meant for goods deemed “essential,” was only temporary. They were informed in August that the window was being looked at.

Yet, there was no mention of this in Mr Imbert’s budget of September 30, which had a section devoted to Eximbank matters.

In fact, the budget arguably gave the opposite impression.

Additionally, as noted by president of the TT Chamber of Commerce Kiran Maharaj, no timeline has been divulged in relation to the review.

That is likely because the outcome currently appears to be a foregone conclusion.

The minister’s statement said the Eximbank facility “would be amended to return the programme to its original intent.”

Further, the special window was meant to support citizens only in the wake of the covid19 pandemic.

The irresistible inference is that the government wishes to signal the facility’s end.

All these manoeuvres come mere weeks after Mr Imbert was forced to address Hyatt Regency’s highly controversial announcement that it would only accept US dollars, pounds sterling, and euros in a new cashless policy.

That move was later rescinded by the hotel, but not before the minister, who had initially distanced his ministry from Hyatt’s operations, announced an investigation into its “currency aspect.”

Investigations, impromptu reviews – none of it inspires confidence in a coherent government policy framework.

It is little wonder dejected businessmen are going so far as to send legal letters to independent agencies, and even the IMF, seeking redress.

On October 21, Mr Imbert issued a great deal of gun talk during the budget debate as it relates to the activity of big energy companies and the ways in which their practices impact forex issues, saying this was a matter he planned to tackle.

Yet, the minister’s belated discovery of this energy sector nuance within such a long-standing problem, which he said was the fruit of an analysis he undertook “a couple months ago,” adds to an already worrying picture of piecemeal policymaking, especially as the year’s busiest period approaches.