Trinidad and Tobago’s forex situation has been described as having reached crisis by many. The country has seen significant reductions in revenue and ever increasing fiscal deficits. Consumption patterns have not kept pace with reductions in revenue or decreased economic activity. The pandemic has made the situation more critical.
There is a shortage in USD to the point that businesses are struggling to aquire forex to service their suppliers and creditors. Many commercial banks have reduced the amount of daily, weekly and monthly allocations to commercial businesses and private citizens.
Many have suggested that the ordinary citizen’s consumption patterns which drive imports and an ever ballooning food inport bill (in excess of 5 billion dollars) is a large part of the problem. Economist Marla Dukharan contends that it’s more the fiscal deficit and government policy in subsidising the TT exchange rate are where we should focus our attention.
Economist Marla Dukharan spoke to Demming Chronicles and explained her position on the issues.
See the full interview on the Demming Chronicles on Izzso Media.