What's causing Trinidad's Forex crisis?

[@darcycarr8924]

Oil is not running out, we are producing it poorly with zero skill sets and attention. Marla, thanks for your candor.

[@terrology]

It's a non renewable resource......

[@Jan-A]

Please talk about the "Arrangements" between Car Dealerships and Commercial Banks. Although the law provides for a citizen to import a vehicle every 4 years, the banks will not "sell" him the US to purchase it, but somehow Car Dealers are getting US bringing in vehicles by the containers, by the warehouses, by the parking lots. Why? The Car Dealerships will hike up the price and the only way citizens can now afford vehicles is through loans from the same banks who would not sell US to them, but somehow it's available to the Car Dealerships.

[@tendosingh5682]

Also the profit margin is huge compared to other products. Of course Banks benefit from this as well.

[@Jan-A]

If you don't need loans, keep your money in Unit Trust. UTC is not a bank and therefore don't have to play by the rules of the Commercial Banks. But please note, UTC does not sell US or any other currency. You have to go with your own US or TT, but unlike the Banks, you have access to your own money.

[@JoshJC]

Bussiness clients are given prioritisation by banks, this isn't isolated to banks, nor a new concept. The banks, still choose the limits and how to allocate their USD allowances each month amongst their clients. In this controlled economy, it is ensured that the businesses purchase vehicles with the USD as intended.

[@speeddemon9616]

Funny enough, I didn't know how bad that US sanction affect us, until buying a car, and having to go through that Bs with the banks for months, going "black market " turn out alot quicker and even with the fees cheaper than buying local.

[@Jan-A]

@@JoshJC this is because of the restrictions placed on the Banks. Right in Caribbean, this is not happening, and our neighbours are asking, "What's going on in T&T with foreign exchange, US, EC.... .? And how often is an individual going to be looking for US to import his own vehicle? This is once, every four (or five) years. Yet, the Banks will allow you to use thousands of US dollars via a Credit Card per billing cycle? Why? It allows them to keep you in debt.

[@dy6682]

Remittances and tourism across the Caribbean are the two largest sources of foreign money….. Exports are not in the same league . We need to grow our own food and cut down on foreign imports for starters .

[@theoccasionalvideo]

How much food can we grow? We're islands!

[@Bruv-]

It used to produce enough and more to feed its own people until it joined the UN​@@theoccasionalvideo

[@jagriv5659]

And so I am told the farmers are targeted and robbed by criminals in Trinidad.

[@Manganization]

@@theoccasionalvideo We're an island that can absolutely feed our people. The goal isn't to eliminate food imports. The goal is to reduce food imports. The government has been told time and time again to prioritise agriculture in Trinidad but they're not listening.

[@ChristianRodriguez-qs8zf]

She is advocating a currency devaluation which will reduce the demand for FX and stabilize supply but she has not mentioned the price increases that will result and the higher cost of living for everyone. While her position is theoretically valid she has missed the point why the Govt does not want to devalue.

[@NativeNomad10]

Funnily, Jamaica currency is devalued yet Jamaica cost of living is less than Trinidad. Why do you think that is? Jamaica cpi is 140 while Trinidad cpi is 163. She knows what she is talking about.

[@ChristianRodriguez-qs8zf]

​@@NativeNomad10your data is inaccurate. Over the period 2020-24 the Jamaican CPI moved from 105 to 140 or roughly 9% per annum while TT CPI moved from 108 to 124 over the same period equal to 4% per annum.

[@ambrosia_123]

Not to mention if one devalues, it should be gradual. In the meantime, the efforts to ramp up agriculture and manufacturing has been going on, not to mention because of the high number of educated persons, it is a destination for BPO businesses (IQOR, Bill Gosling etc) for service based jobs. Devaluation out of the blue can have many citizens go hungry.

[@ShawnFarwell]

She does cover the higher cost of living at 26:00 and again at 31:15

[@sportreelz7025]

​@@ChristianRodriguez-qs8zf As of 2024, Trinidad and Tobago CPI is above 163, and last year it was also more than Jamaica. According to word bank, as of 2024, its in the 170's for Trinidad and Tobago. you must be talking about a specific basket but definitely not the average baskets or average CPI. Quote" CPI Price, nominal in Trinidad and Tobago was reported at 176 in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. Trinidad and Tobago - CPI Price, nominal - actual values, historical data, forecasts and projections were sourced from the World Bank on November of 2024"

[@shireenogir5636]

We have a crises all over the world with high inflation. You forget the USA reserve currency is used as a printing press. Lots of dollars floating around no backing for it so when it crashes it would not affect our country as others. Let's start start creating and revving the local economy for future international setback.

[@mrshonestopinion]

Didn't think about it like that nah. Maybe you are right cuz the US dollar crash is coming very soon.

[@mellymel6624]

Somebody thinking 👍

[@Getthefukouttahere]

When the U.S. dollar crashes, the world will feel the pain especially small countries that depend on imports. It’s all a fascade!

[@abcdefghi9]

Trinidad is fucked. They failed to use their oil wealth to diversify their economy. Now they will face the consequences. They squandered and wasted most of their resources. A cautionary tale. Similar to Vanuatu Island. While Guyana will become like Singapore.

[@kylemarshall9621]

You're wrong

[@theoccasionalvideo]

Trinidad's economy has diversified. It's not the same economy as the oil boom years. Secondly we have no idea where Guyana is headed. Hopefully in the right direction.

[@danielb5721]

It wasn't wasted, it was stolen!

[@Ryan1rod]

Im from trinidad, please help me understand where's the diversification you speak off.​@theoccasionalvideo

[@abcdefghi9]

@@theoccasionalvideo into what?

[@SandraDavis-v1m]

Thank You , I am an Economics Major. Well explained

[@stephenbroadbridge8325]

I’ve been doing ecotourism in Trinidad for over 30 years. I sell vacation packages abroad. The groups I brought in filled beds in hotels. Seats in restaurant and bars. Hired guides and transportation. I generated much USD. Since the return is the PNM government, I have had a 60% dip in income. I’m Vice President of the tour operator’s association. Most of our members have also had a major reduction in business. Government continues to tax us but ignores our request for meetings. We have zero representation. Lousy policies. Government has fired all our foreign reps. They haven’t advertised Trinidad for 9 years. I’m completely fed up.

[@hahahahahahahahahaaaaaaaa]

Lol… rough me boy

[@supplychainanalytics9114]

Because the country has gone to 'shit' and they are just looting everything. Look at the disaster that petrotrin was.

[@xIsantaIx]

And when you voice your concerns the Pnm supporters start trolling you with nonsense it's beyond frustrating.. It was soo much better with the previous Government Unc we had little to no problems.. This current government is taxing us wayyy more using more money with nothing to show for it.. and not explaining to us what they are doing with it.. no transparency.. the world is watching.. soon the current Rowley Pnm lead government will be in the spotlight .. the finance minister is already under investigation by the privy council since 2.6bil TTD is missing from the treeasury .. This government is the height of mismanagement and no accountability cant nothing else speak like corruption...

[@mantrinbago]

What do u propose? This seems like a long to medium term fix😢

[@nymack66]

"Government has fired all our foreign reps. They haven’t advertised Trinidad for 9 years." this sounds like you want the government to support your business?

[@victoriassecretisluv]

All I know is that on the Morning Jo show in America the man did not know that butter moved from 4.00 to US7.00 . Well in Trinidad its US 9.00 . Can you imagine if the Trinidad government floated the exchange butter would go through the roof ! People would be upset !

[@AnsariBaksh]

This was very informative for me. I live in Trinidad and am one of those affected by this issue.

[@odamian62]

Sorry bro, get more information because this ain't it.

[@JoshJC]

She isn't very wise. While yes, the market influences and directs prices, the market for imported cars, purchasing of land, and the major driving factor of any market is the top 3% - 20%. They are inflation-proof through investments and high paying jobs and will keep importing cars and any goods and items they wish, which will increase the price of everything if not regulated. We already see this with land not only in TT but all over the world where the rich and investment banks buy up all of the available housing, not allowing the "market's demand" to drive the price down to match with the working class and lower-income sector. A peg on the US dollar allows for a controlled amount of imports, so everyone enjoys the same market price of imported vehicles and products equally. If the exchange rate is allowed to move freely, just like Jamaica, which is currently JMD$159 to USD$1, the cost of living will dramatically increase, and the price of everything will go up, realistically affecting mainly those without invested interest-earning savings. Think about it, while yes, we are producing oil and gas still, what happens when it runs out? We've been producing for over 100 years. Then we will need to import oil and gas. By this time, if we allow US and global inflation to leak into our economy by allowing the "market" an uncapped, uncontrolled outflow of USD and importing, guess what? Our TTD will devalue. Fast forward to if the "market" drives our exchange rate to TTD$100 to US$1, guess what will happen when we need to import oil and gas? TT will experience hyperinflation overnight, just like Venezuela and many other countries did. She is allowing her personal biases and high level of mistrust and skepticism to blind her overall analysis. She claims that "someone" is benefiting from purchasing USD at TTD$7.8 vs. TTD$8. Think about it, without USD being pegged to TTD$7.8, where it is still available through the bank by request for legitimate use, it will prevent the black market price from getting out of control as well. Only the overspenders and those who need USD in CASH for whatever personal reasons will purchase on the black market. Most spenders have a credit card with a considerable USD limit, and depending on the client's net worth, they have a higher limit to even accommodate the overspenders, which prevents excessive and wasteful spending or exporting of our USD reserves out of TT. There is no legitimate reason to allow uncontrolled or large withdrawals of USD in CASH. For those who can't wire their own USD, I believe this is sad, wrong and overstepping; however, the reality is as follows: Despite the lack of explicit prohibitions, the Central Bank's policies and the economic situation might indirectly affect the ability to wire USD abroad. For instance, if there's a forex shortage, banks might delay or limit transactions due to insufficient liquidity in USD, which isn't necessarily an outright legal prohibition but rather a practical limitation influenced by policy. Direct Legality: There's no explicit law or recent regulation directly cited that makes it illegal for banks or the Central Bank to prevent someone from wiring their USD out of TT. However, the practical ability to do so might be severely limited or delayed due to forex shortages or bank policies. While the CBTT conducts monetary policy aimed at maintaining low inflation, financial stability, and supporting economic growth, these objectives align with government economic policies but are executed independently by the Bank. The Bank's use of instruments like the repo rate to influence monetary conditions shows its operational autonomy in day-to-day monetary management. Emergency Controls: The case of the Central Bank relinquishing control over CLICO in 2022 after a period of emergency management highlights that in crisis situations, the government can authorize the Central Bank to take specific actions, indicating a form of control or at least significant influence during emergencies. I digress a bit; the "someone" who is benefiting at a rate of TTD$6.8 vs. TTD$8 on the black market is a joke. Imagine if the global market were to devalue our currency, and now everyone has to pay in excess of TTD$10, and more than likely, a continuous rise. So currently, that "someone" who is benefiting is everyone. As she mentioned, TT is the only country out of the countries she observed that has a consistent decline in USD reserves. So why support uncontrolled "market" driven forces? That doesn't make any sense. T&T’s net official foreign reserves declined by 45.84% between the end of September 2015, when the reserves position was US$10.539 billion, and September 2024. The current administration was elected on September 7, 2015. In its Annual Economic Survey for 2023, the Central Bank disclosed that the demand for foreign exchange-measured by sales of foreign exchange by authorized dealers to the public-totaled US$6.228 billion. Supply of foreign exchange-measured by purchases of foreign exchange from the public by authorized dealers-amounted to US$4.614 billion. That left a net sales gap of US$1.614 billion, of which the Central Bank supplied US$1.342 billion to authorized dealers to support the market. Exchange Rate Pressure: The positive interest rate differential can put downward pressure on the TT dollar. Investors might sell TT dollars to buy USD, where they can earn more interest, leading to a depreciation of the TT dollar if not managed through forex controls or other monetary policies. The cause of the monetary policies is not to benefit "someone" but to account for changes in the market. Every single past administration had the opportunity to steadily increase our USD reserves, but this limitaion and "control" would look bad to the public and jeopardize their political image. I support the current monetary policies and decisions, and thank goodness we have some practical persons influencing these decisions in our current administration. If you want USD, earn USD. If the country wants to enjoy imports of foreign goods, produce more local goods for export. It's that simple. No conspiracy. In summary, the discussion around the TTD's peg to the USD, the influence of the top economic echelon on market dynamics, and the implications of foreign exchange controls versus market liberalization, highlights a complex economic strategy aimed at stability and controlled growth. While there are valid concerns about the equity of these policies, particularly regarding who benefits from the current exchange rate mechanisms, the overarching goal appears to be protecting the broader population from the volatility of global markets and inflation. The Central Bank's policies, supported by government oversight, strive to balance economic stability with the need for foreign exchange, ensuring that while not everyone might be satisfied, the system aims to mitigate the worst effects of economic fluctuations on the general populace. This approach, while not without its critics, underscores a pragmatic response to the unique economic challenges faced by Trinidad and Tobago, advocating for a measured approach to currency management and economic policy-making.

[@joncumber2020]

This is incoherent rubbish with a pretty clear agenda.

[@natillefoxy9881]

​@@JoshJC ❤

[@paulranger5250]

So, the super rich oil companies are complaining that the government isn't giving them money to search for more oil? How about if the same greedy SOB oil companies take their own money that they have gouged from consumers/tax payers and look for oil???

[@1244izzy]

Some of the comments here show why Trinidad and Tobago is finished. I can tell those apart who are economically inept aside from those who actually understand economics and how currency pegs work. For those who believe she is wrong, continue to listen to your PM and maybe consider educating yourselves in the interim because I CAN ASSURE YOU, when our leaders finally break this economy (and they will), the illiterates will suffer most... and that same PM will migrate..

[@nevillev2963]

In Jamaica you can withdraw $USD from your $USD account from some ATM machines. Also it is very easy to buy $USD from the banks and the cambios. When there was a fix exchange rate you could only get maximum $USD $50 from the bank. There was a thriving black market. It was unsustainable.

[@saaras3081]

I now understand why the PM said Marla is talking jackassness and I concur! How would devaluing the currency result in more US? How would that build reserves? How would that do anything except increase the cost of living? How is low inflation a bad thing and why is she equating that with economic stagnation? So runaway inflation like Zimbabwe some years ago meant a booming economy??? Jackassness oui!

[@junioralfred-vw3sv]

😂😂😂😂😂

[@odamian62]

Me tooo....lol

[@jaronbalfour3711]

😂​@@junioralfred-vw3sv

[@thedatasage]

Low inflation is a bad thing to persons who have assets, because the "dollar value" stays low. Rich and wealthy individuals love inflation because they get richer every year and the poor get poorer every year. Deflation or stagflation is good for the poor and middle class because the cost of living stays low and the price tag to buy assets are low

[@Kaliwampas]

Trump said he will "drill, baby drill"......Rowley rename Petrotrin and became a retailer of fuel, instead of managing and expanding the oil sector. Anyone with a brain and an adult age can understand that the current government is the worst. Grooming citizens to accept less. Their supporters like to kick the "world" football anytime they want to make comparisons to manipulate a point or narrative. So let me take a kick at the ball, in America, you would never hear their leaders saying ban yuh belly, tighten yuh belt, hold strain.......they tell their people to live the american dream, seek enterprise, work hard, the land of the free while creating and doing things with a vision. We hire a government to manage and seek our interest, not close down and lock up and control.

[@JaelzEllie]

I didn't understand the role and responsibilities of an economist. This video was very enlightening and she explained in such a superb layman manner that has me interested in what else economist do.👏🏾👏🏾👏🏾

[@michaelabraham3677]

People are also transferring the credit card USD to a USA bank accounts and then selling it higher. Making the problem even worse and causing more USD spending limits.

[@speeddemon9616]

I think this was one of the reasons the US put that limit on T&T, if am not mistaken.

[@IllusionVevo]

That is y I start using PassCash, for online payments or to hold USD until its time to withdraw it to a US account.

[@sharsasuke01]

The problem is Trini businesses were buying USD through the Jamaican market and we recently cut them off because they refused to buy their own currency back from us. I think that was a big factor in this crisis.

[@DeTriniJam]

Very comprehensive indeed, I throughly enjoyed this conversation

[@thaddeusvincent2909]

No mention of replacing many of these imports with local products

[@speeddemon9616]

If am not mistaken, T&T was sanctioned to make USD scares by the US almost 10years ago, trini-ppl did not want to sign that sanction but our PM did it anyway. Since then US was very hard to get, banks limited anyone who is not a big business owner to 200USD a month, and like she said you have to tell the bank in advance, else you would have to wait a next month or some times 2 or 3. 24:27 a minister did get on TV and say this for real.

[@trevorcherry8519]

Even if you open a US savings account the bank will not give you us dollars just don't make sense and will not let you use a debit card in the US to access your US money

[@josephineosborne4919]

That sucks !!!

[@challybirchwood6479]

she is totally correct. Trinidad and Tobago is on a Managed Float. The official exchange rate is not a reflection of the true needs of the countries market. The Central bank is subservient to the Ministry of Finance which the Minister in Charge is a political Appointment. USD distribution is not determined by true needs but by Financiers who has similar political patronage.This and the main Local Oligarch's need to crush the up and coming Businesses who they see as Competitors by weaponizing the access of these business to get FOREX .The Main Oligarchs are major shareholders of the main Banks that operate in Trinidad and Tobago.

[@odamian62]

While the TT government does inject 2.4 billion US into the system yearly, be mindful of the fact that commercial banks inject 4 billion US dollars. US distribution therefore would be guided by other considerations like supply and demand. Not everything is a conspiracy!

[@stadex4203]

What you have described is a corrupt cartel with secret back room deals, if this was the USA there would be federal investigations into that. No wonder crime is out of control if the small man and woman cannot create a business that challenges the status quo of the people who play golf.

[@shammyramai7091]

Very informative interview!!! Great job!!!

[@RawleAnnandsingh]

Very insightful interview.

[@jamiami3804]

What she really advocating for is to legally cut her workers pay on a monthly basis. In Jamaica every time the dollar devalued workers get a pay cut while businesses just increase their prices. Devaluation is a pay cut for the workers because wages doesn’t adjust as fast as you can increase prices for your products. Big business like devaluation because wages is usually one of their biggest cost and devaluation allows them to reduce wages usually for a whole year and longer for those who make minimum wages because government takes long to adjust minimum wages. In Jamaica it gets a little offset by the remittance because half the population gets some sort of remittance but businesses are the winners of devaluation.

[@sportreelz7025]

thus its better to do business in Jamaica and have a side hustle. With Trinidad having a significant manufacturing sector, isnt that still ideal for them?

[@nydiasavary7487]

Thanks much Marla, for providing a better understanding of the situation. Your knowledge is greatly appreciated!

[@WorlBozz]

Also agree with her on not voting for either pnm or unc..they are both horrific for us!

[@petermorris468]

An excellent and accurate analysis of the T&T forex problem. Unless this is rectified T&T will become another Venezuela.

[@jeffreylocke9548]

Citing Jamaica Forex policy as a good example is easy for someone not living in JA to do. Over the many decades, the rate of inflation in JA has created a tail of two cities - the very few that have and the majority that don't. She displayed no concern for the negative impact of devaluation - inflation. A currency peg is not the overall solution either. However, it slows down demand, which slows down inflation. It is the less of two evils as it is only a short-term fix.

[@chadcapitol6674]

Information packed convo 😀 thanks 🙏

[@michelhaldane6224]

The 38 KFC and the 20+ Subway soaking up the US$ supply with the need for Franchise fees

[@seanj2451]

lol what!? ooh boy

[@nieljames9844]

You are correct in saying at 34:06. The honest truth 👏

[@gillianwalters9840]

Unfortunately majority of citizens seem to think this doesn't affect them and not concerned due to complete ignorance.

[@amarrambadhan8072]

This video is one of the best explanations and solutions of this problem I have seen.

[@odamian62]

Surely your kidding!

[@JoshJC]

She isn't very wise. While yes, the market influences and directs prices, the market for imported cars, purchasing of land, and the major driving factor of any market is the top 3% - 20%. They are inflation-proof through investments and high paying jobs and will keep importing cars and any goods and items they wish, which will increase the price of everything if not regulated. We already see this with land not only in TT but all over the world where the rich and investment banks buy up all of the available housing, not allowing the "market's demand" to drive the price down to match with the working class and lower-income sector. A peg on the US dollar allows for a controlled amount of imports, so everyone enjoys the same market price of imported vehicles and products equally. If the exchange rate is allowed to move freely, just like Jamaica, which is currently JMD$159 to USD$1, the cost of living will dramatically increase, and the price of everything will go up, realistically affecting mainly those without invested interest-earning savings. Think about it, while yes, we are producing oil and gas still, what happens when it runs out? We've been producing for over 100 years. Then we will need to import oil and gas. By this time, if we allow US and global inflation to leak into our economy by allowing the "market" an uncapped, uncontrolled outflow of USD and importing, guess what? Our TTD will devalue. Fast forward to if the "market" drives our exchange rate to TTD$100 to US$1, guess what will happen when we need to import oil and gas? TT will experience hyperinflation overnight, just like Venezuela and many other countries did. She is allowing her personal biases and high level of mistrust and skepticism to blind her overall analysis. She claims that "someone" is benefiting from purchasing USD at TTD$7.8 vs. TTD$8. Think about it, without USD being pegged to TTD$7.8, where it is still available through the bank by request for legitimate use, it will prevent the black market price from getting out of control as well. Only the overspenders and those who need USD in CASH for whatever personal reasons will purchase on the black market. Most spenders have a credit card with a considerable USD limit, and depending on the client's net worth, they have a higher limit to even accommodate the overspenders, which prevents excessive and wasteful spending or exporting of our USD reserves out of TT. There is no legitimate reason to allow uncontrolled or large withdrawals of USD in CASH. For those who can't wire their own USD, I believe this is sad, wrong and overstepping; however, the reality is as follows: Despite the lack of explicit prohibitions, the Central Bank's policies and the economic situation might indirectly affect the ability to wire USD abroad. For instance, if there's a forex shortage, banks might delay or limit transactions due to insufficient liquidity in USD, which isn't necessarily an outright legal prohibition but rather a practical limitation influenced by policy. Direct Legality: There's no explicit law or recent regulation directly cited that makes it illegal for banks or the Central Bank to prevent someone from wiring their USD out of TT. However, the practical ability to do so might be severely limited or delayed due to forex shortages or bank policies. While the CBTT conducts monetary policy aimed at maintaining low inflation, financial stability, and supporting economic growth, these objectives align with government economic policies but are executed independently by the Bank. The Bank's use of instruments like the repo rate to influence monetary conditions shows its operational autonomy in day-to-day monetary management. Emergency Controls: The case of the Central Bank relinquishing control over CLICO in 2022 after a period of emergency management highlights that in crisis situations, the government can authorize the Central Bank to take specific actions, indicating a form of control or at least significant influence during emergencies. I digress a bit; the "someone" who is benefiting at a rate of TTD$6.8 vs. TTD$8 on the black market is a joke. Imagine if the global market were to devalue our currency, and now everyone has to pay in excess of TTD$10, and more than likely, a continuous rise. So currently, that "someone" who is benefiting is everyone. As she mentioned, TT is the only country out of the countries she observed that has a consistent decline in USD reserves. So why support uncontrolled "market" driven forces? That doesn't make any sense. T&T’s net official foreign reserves declined by 45.84% between the end of September 2015, when the reserves position was US$10.539 billion, and September 2024. The current administration was elected on September 7, 2015. In its Annual Economic Survey for 2023, the Central Bank disclosed that the demand for foreign exchange-measured by sales of foreign exchange by authorized dealers to the public-totaled US$6.228 billion. Supply of foreign exchange-measured by purchases of foreign exchange from the public by authorized dealers-amounted to US$4.614 billion. That left a net sales gap of US$1.614 billion, of which the Central Bank supplied US$1.342 billion to authorized dealers to support the market. Exchange Rate Pressure: The positive interest rate differential can put downward pressure on the TT dollar. Investors might sell TT dollars to buy USD, where they can earn more interest, leading to a depreciation of the TT dollar if not managed through forex controls or other monetary policies. The cause of the monetary policies is not to benefit "someone" but to account for changes in the market. Every single past administration had the opportunity to steadily increase our USD reserves, but this limitaion and "control" would look bad to the public and jeopardize their political image. I support the current monetary policies and decisions, and thank goodness we have some practical persons influencing these decisions in our current administration. If you want USD, earn USD. If the country wants to enjoy imports of foreign goods, produce more local goods for export. It's that simple. No conspiracy. In summary, the discussion around the TTD's peg to the USD, the influence of the top economic echelon on market dynamics, and the implications of foreign exchange controls versus market liberalization, highlights a complex economic strategy aimed at stability and controlled growth. While there are valid concerns about the equity of these policies, particularly regarding who benefits from the current exchange rate mechanisms, the overarching goal appears to be protecting the broader population from the volatility of global markets and inflation. The Central Bank's policies, supported by government oversight, strive to balance economic stability with the need for foreign exchange, ensuring that while not everyone might be satisfied, the system aims to mitigate the worst effects of economic fluctuations on the general populace. This approach, while not without its critics, underscores a pragmatic response to the unique economic challenges faced by Trinidad and Tobago, advocating for a measured approach to currency management and economic policy-making.

[@adrianseales6806]

Very well said indeed ​@@JoshJC

[@no.1spidey-fan182]

​@@JoshJC Bro make a VIDEO on this. This information is LOST to the comment section😭

[@EMengineer]

Good commentary Guyana went through a similar situation some time back where the Guyanese were creative in getting USD out. The rate in Guyana, albeit high, has been fairly stable for the last 10 years

[@Furious187]

All the usd going towards ansa and the pnm ppl... no forex for citizens but ansa buying usa company for 300+ million usd

[@JkEnterpriseinc-fp3gm]

Truth

[@michaelabraham3677]

Ansa has massive businesses in the USA though

[@JohnDoe-qv1kg]

they borrowed that money from USA....citibank

[@glendonh3711]

You left out Pricesmart

[@joyousjamaican]

But the TT companies that have arms in Jamaica buy their US here and have done this for years because of the limitations in access to the dollars there. The scarcity / control over the dollars in other islands has been persistent, and you cannot tell me this is not a part of the reason for the move of the dollar in Jamaica.

[@tropics8407]

Shutdown sugar industry, shutdown refinery, shutdown Iron and Steel industry, stop Aluminum industry but start what ? How long we hearing about new tourism industry in Tobago and nothing 🤷‍♂️

[@rali-cassim2733]

Some of these decisions are being driven supranationally. We don't have full control of our own economy. It is true bad decisions and actions locally compound the issue, but it is only a part of the recipe being cooked.

[@DavidLewis-uh1hj]

Thank you for sharing. It explains why, when I go to Trinidad for Carnival, I have to pay for lodging by depositing US funds into the home owner's New York bank account. She refuses to be paid in Trinidadian dollars.

[@mckenzydukhedin581]

We don't need more manufacturing companies to export good's to bring in USD what the government has to make sure is that export money come back home and they're not going to stay in the USA and others countries like the Bahamas because this is what is taking place in this country because she must speak the truth about this nonsense with the private sectors exporting companies

[@hihosilva9089]

The consequences of corruption in Trinidad have come home to roost

[@JasonRoberts-d6e]

When the government released the forx to the business community and others. How are they getting back a return on that money, is it an investment to the government. And in what way the output is being back an income to the country's economy. And how it is helping to replenish the country's treasury

[@sandyr1507]

Thanks Ms Dookaran for this explanation, everything you said you very much correct 🇹🇹

[@stadex4203]

So TT banks are basically rationing US dollars. What would a bank do if a customer said "I am closing my USD account now, cash me out", could a bank refuse? Somebody should try that tactic just to see what they do.

[@rundmz30]

They would issue the client the limit of the day or week (some banks differ in the frequency in which they make US available) and continue issuing that limit to the client accordingly until they are paid. Alternatively, they may issue the US equivalent in another currency so that they don’t give all their US to one customer. This is just my logical reasoning, I could be wrong. But banks in T&T are brazen enough to make such policy decisions that protect only their and their shareholders’ interests.

[@dawnmariedebrah1472]

Really interesting..what happened with my PEOPLE

[@andersonpoulido2605]

Trinidad needs to cut the amount of foreign fast food and big foreign establishments that sucking the foreign reserves

[@rogertraboulay1938]

I like listening to Marla. But she is missing some key points: 1. Crime is killing Trinidad’s business. 2. Trinis are spoilt, after years of subsidies, the hustle we are looking for likely won’t have. 3. The exchange rate will surge. Beyond the black market rate. To think it won’t is naive. 4. Oil and Gas is done.

[@TheThunderSound]

This is why the digital cbdc trials have been going on in neighbouring islands. Instant digital settlement systems means you don't have to pre frund forex currencies to settle transactions.

[@hewi868]

Devaluation of the $TTD would cause inflation. The black market would increase their rate, if the official rate increases, because it doesn't solve the problem which is scarcity. What the economy needs to do is diversify. Increase tourism because that's where most foreign exchange seems to be coming from.

[@PastaSenpai]

The scarcity issue will be satisfied if it takes more TTD to turn into 1 USD. Demand for USD will decrease and will optimize according to who is in need of USD the most.

[@seanj2451]

lol what?

[@chrisward2353]

They should get with digital currency so they would have to depend on the US Dollar .

[@christonrlblackman]

The price would have to spike to 12$ to 1$ to balance things out

[@ronaldmarcano5648]

Our Caribbean has been home to many groundbreaking inspiring intellectuals in the period of the 1980s but any position needs to be matched against the sociology of the islands. Premdass et al talks about the peculiarity of Suriname Guyana and Trinidad as mired in divisiveness and tensions between the two groups as ‘Plural’ societies where we meet in markets buying and selling but like water and oil do not combine. Understanding this is crucial to the other structures of existence - economic legal etc are ‘us Vs them’ with groups basically aligned to their tribes., and so here we are -the facts about the Forex depends on whose bias aligns with your propensity to call it out or accept it. I have neither time to rehash the misinformation but given a Trump new term traditional oil and gas markets like T&T will breathe easier on deadlines. Global markets are reeling and the fact that Trinidad is one of the few in the world that has resisted the throngs of the IMF is testimony to effective economic and fiscal management. Economists are model enthusiasts that use ‘ceteris paribus’ as punctuations, the real world of governance require to walk and chew at the same time.

[@reevanlalchan]

great is d pnm 😅

[@leslieassang494]

😂😂😂

[@RealBishop1]

Typical academic apolitical theorizing in their ivory towers and comfort zones of speculative conjecture devoid of reality… These individuals don’t live in a real world.

[@dwayneknight1126]

I live in trinidad 10 years now and this prob exist since I can remember 2016 money gram close down for months western union basically u had make an appointment so it's not new wen it talk about is wen some big companies can't get enough forex then it come a talking point after it go quiet .reason why the problem exist the country not earning enough forex to supply the demand devaluation will not help hence the reason we suffering in jamaica so much over the years

[@bigoevaluatingfoodsfordiab2690]

This is not an expert and does not make much sense. Trinidad always imported sugar even when they produced sugar, because of how the country independence was setup with the sugar companies in England, I know this for a fact because as a youth doing custom brokage work for Caroni 1975 LTD, I personally exported the dark sugar and imported and cleared the imported refined sugar and distributed to all the local manufacturers. One of the main purposes of foreign exchange management is to avoid devaluation during global instability. I could go on, but she is just a waste of talk.

[@speeddemon9616]

Am not that old, but this pretty much what i know to.

[@adrianseales6806]

​@@speeddemon9616Wow! You learn something everyday. Thanks for the intellectual insight.

[@vernicephillip4882]

I am learning a lot from the comments

[@dnatural1iam23]

Marla is so beautiful 😻❤️

[@jennalud4748]

Yes and Kalilah...Jamaican beauty🇯🇲

[@miguelpascall6759]

So what are the banks doing with people's money when they deposit it into their accounts?

[@carolannsinanan7909]

Giving it to Central Bank.

[@n2rj]

Trinidad and Tobago should have diversified away from oil and gas a long time ago. It was never going to last.

[@karlkelly9005]

Can this be the reason why TT invest in other Caribbean countries for access to the US dollar?

[@TaranRamjit]

The dollar needs to be floated, it would be painful. Dukharan has sound economic knowledge.

[@woopishk]

BRICS may be a future option. But the US will Venezuelarize or asses if we only pivot at the wrong time

[@JohnDoe-qv1kg]

not if the oil and gas run out and we have nothing to offer..remember venezuela is a dictatorship with obvious human costs...trinidad is not

[@kylemarshall9621]

Please get a better ambassador for Trinidad

[@Benji_1]

Well said. Who qualified her as a Economists

[@adrianseales6806]

​@@Benji_1She is an economist,but her professional opinions are tilted .

[@varleesingh5598]

The plain and simple answer is that Petrotrin the main earner of forex for the country was shut down and no other entity has been able to fill the void. All these " solutions" is like applying duct tape to a failing wall and hope it fixes it. Bottom line is that if we do not find a way to generate large amount of foreign currency then we are doomed. Step 1 in doing so is to get the PNM out of government.

[@tropics8407]

Correct ✅ they had a right to allow Fitzroy Harewood et al to fix Petrotrin and the OWTU.

[@Esmbf929]

I don’t live in your country and I know that your Petrotrin was also a major drain on your country’s finances owing billions of dollars in taxes to your government and to creditors,coupled with an entitled non productive work force and trade union who seems to have a warped view of your country’s economic state Petrotrin had to be shut down and restructured,you will never hear any economist outside of Trinidad criticize your government on shutting it down only regular ppl who has no real idea on how detrimental it would’ve been to your country’s finances and even your credit ratings if Petrotrin had remained in its current form of operations..the IMF would’ve stepped in and make you get rid of it by force,there would’ve been no restructuring no rebranding just a fire sale and termination of all workers…ask any Jamaican about the stringent policies the IMF implements once u entered on of their programs…

[@varleesingh5598]

@@Esmbf929 what kind of special kind of stupid are you ? Do you think shutting down petrotrin made the taxes disappear? It just shifted it to Heritage Petroleum and taxpayers still have to foot the bill.

[@tropics8407]

@@Esmbf929 correct ✅ Petrotrin workers were the highest paid in the industrial sector with the best benefits, yet had the worst productivity in the sector and the highest overtime bill. This is how a Marxist union destroys a company.

[@no.1spidey-fan182]

Get BOTH sides OUT of the government. We need a COMPLETELY NEW ONE ACROSS THE BOARD

[@cynthiaholder7198]

That is being very honest, and that's my feelings right now, I'm not seeing myself voting for the ruling party nor the opposition, it's time to give another party a chance and we should remember, voting has consequences.

[@dellchica2373]

Pnm will win again because the votes will be split. So pnm 4ever

[@mrshonestopinion]

Greed and corruption...simple

[@timber2533]

The problem is corruption in Trinidad, the one percenters are squeezing the citizens from getting forex so they wont be able to purchase cheaper products online cornering them to purchase from the local businesses who marks up the products at a 400 to 800 % mark up.

[@gail130]

The us is not the only currency we cannot get, problems to access pounds as well.

[@darcycarr8924]

Oil is not running out, we are producing it poorly with zero skill sets and attention.

[@georgemoses9204]

Trinidad should have listened to Peter George Jr and divested into bitcoin. They could have mined it with cheap energy and stranded gas

[@challybirchwood6479]

while it is a great idea,the issue is that we do not have any extra Gas for that

[@ambrosia_123]

@@challybirchwood6479 that idea is ass. Bitcoin has no value aside from speculation. It cannot be a long term investment vehicle for a COUNTRY

[@dawnmariedebrah1472]

Canadian..Trinidadian Jamaican...

[@cramkisson9709]

The problem with Trinidad is that they are Governed by one ethnic group with minor interludes . Guyana had the same problem with incompetency re. One ethnic group .That has now changed and Guyana is on the ascendency .

[@seanj2451]

How is this even a topic? This is sooo weird to me isnt a person born in Trini or Guyanese nationals. You sound back water dunce.

[@JevanSoyer]

The Foreign Exchange Control Act as well as the fact that the banks are a law onto themselves is the real problem If the entire Caribbean is trading in US why the conversation of dollarisation is not being started?

[@kbaldeo]

The FECA is the biggest problem we have. Dollarization is by far the best option but it will be hindered by the lack of investment in tourism and the difficulty foreign investors face in doing business locally. Simple changes could be so effective but we lack the leadership to make it happen.

[@odamian62]

PREACH......LOL

[@farriedmohammed6685]

​@@kbaldeoTruth as it is.

[@barefoot_wanderer3625]

The oil bubble has bust in TT. There was no proactive thinking to create other industries, especially with foreign investment within Trinidad. Foreign investors are afraid of the crime increase and extortion from your local street gang. More suffering is in your future Trinidad Are TT politicians benefiting from the US black market rate....

[@StephenHarristnt]

A hater who has let her personal biases totally destroy her recommendations and her credibility. So unfortunate.

[@adrianseales6806]

So,she lacks credibility?

[@PaulPorter-x3j]

This is extremely poor economic analysis. Her explanations are not representative of reality. If having guests on to explain a situation, please ensure that they are better informed.

[@clarencejulien28]

It seems like she's well informed as an economist

[@bobstar2157]

Like u wanted a fully dunce report?

[@adrianseales6806]

She is missing nuance.

[@AaaaBbbb-mp8wd]

Government said there is no crisis! Why is everyone saying this?????

[@densilmitchell9643]

Really? But can you trust the government?

[@Stephen_a.p]

You seem to be living in your own little fantasy bubble. Sycophants believes everything their government tells them

[@ynwsslime]

Believing the government is like believing a prostitute when she says she loves you

[@no.1spidey-fan182]

Anytime the government HAS to say things are fine...they are NOT fine😂 When something is obvious it does NOT need to be STATED

[@dellchica2373]

You still believe the Gott😅??

[@sammohamed4686]

Trinidad government and trinis think they live in a cocoon of exceptionalism while the rest of the world is constantly diversifying in various sectors.. no wonder the economy and foreign reserves are contracting.

[@wendellsmall1819]

Marla just confirms that she is the worse economist and advisor Trinidad and Tobago has to offer. Increasing the US-TT exchange rate will only seek to increase the cost of living for the citizens of TT. The cost to manufacture products will increase and that cost will only be passed on to the citizens of TT and the wider Caribbean. We all know even if the cost to produce those items decrease, the cost of those item will not decrease in the groceries or stores. Increasing the exchange rate will not allow persons more access to pay foreign university fees but increases the amount of money that they need to do so. I would like Marla to explain that if Trinidad and Tobago were not an oil and gas producing economy, where we primarily get our US dollars from, will she still be pushing this negative concept that Trinidad and Tobago in her words "gone through". In her mind it's like the government is not actively pursuing potential deep-sea oil and gas sites and working with the Venezuelan government to increase our oil and gas productivity which TT-Venezuela shares, just to highlight a few things. Yes, the banks and government need to increase access of US dollar to its citizens and business because it is ridiculous but paying more to get less is madness. The only citizens who benefit in the black market to get US money are those who have a little more money to do so and it will not affect them. Money Media, next time get an economist with some substance and someone who is unbiased.

[@adrianseales6806]

Here,here

[@shamirfrancois6878]

Enjoyed this discussion!

[@rhondam.thomas8788]

The challenge is that "professional" biased analysis does not contribute to solutions or positive development in the country or the region. Jamaica model will have more negatives than positives for T&T. We need to innovate and earn more US$ sustainably for the solution.

[@alfansosimon4230]

When Gaston Browne decided to prevent RBTT from buying Scotia operations in Antigua plenty Antiguan people get vexed. But now they see why.

[@Kaliwampas]

EVERY citizen by right should be given a yearly allowance for their personal reasons such as for miscellaneous purchases, travel, medical etc that they can access when their need arises, when you cross a limit, you then join the line like they have in place now. It is unfair for persons who use very little US in a year period. Most people just want a little US to buy something online for a birthday gift or christmas and maybe to travel. The people who need US regular for business is in another level. But of course to do this you need a government who cares about everybody and have vision and performance accountability, something the current government does not have.

[@rodneyconstance8541]

Politician's greed for black market exchange and over night success will now cause an entire country to suffer self imposed inflation.

[@JoshJC]

She isn't very wise. While yes, the market influences and directs prices, the market for imported cars, purchasing of land, and the major driving factor of any market is the top 3% - 20%. They are inflation-proof through investments and high paying jobs and will keep importing cars and any goods and items they wish, which will increase the price of everything if not regulated. We already see this with land not only in TT but all over the world where the rich and investment banks buy up all of the available housing, not allowing the "market's demand" to drive the price down to match with the working class and lower-income sector. A peg on the US dollar allows for a controlled amount of imports, so everyone enjoys the same market price of imported vehicles and products equally. If the exchange rate is allowed to move freely, just like Jamaica, which is currently JMD$159 to USD$1, the cost of living will dramatically increase, and the price of everything will go up, realistically affecting mainly those without invested interest-earning savings. Think about it, while yes, we are producing oil and gas still, what happens when it runs out? We've been producing for over 100 years. Then we will need to import oil and gas. By this time, if we allow US and global inflation to leak into our economy by allowing the "market" an uncapped, uncontrolled outflow of USD and importing, guess what? Our TTD will devalue. Fast forward to if the "market" drives our exchange rate to TTD$100 to US$1, guess what will happen when we need to import oil and gas? TT will experience hyperinflation overnight, just like Venezuela and many other countries did. She is allowing her personal biases and high level of mistrust and skepticism to blind her overall analysis. She claims that "someone" is benefiting from purchasing USD at TTD$7.8 vs. TTD$8. Think about it, without USD being pegged to TTD$7.8, where it is still available through the bank by request for legitimate use, it will prevent the black market price from getting out of control as well. Only the overspenders and those who need USD in CASH for whatever personal reasons will purchase on the black market. Most spenders have a credit card with a considerable USD limit, and depending on the client's net worth, they have a higher limit to even accommodate the overspenders, which prevents excessive and wasteful spending or exporting of our USD reserves out of TT. There is no legitimate reason to allow uncontrolled or large withdrawals of USD in CASH. For those who can't wire their own USD, I believe this is sad, wrong and overstepping; however, the reality is as follows: Despite the lack of explicit prohibitions, the Central Bank's policies and the economic situation might indirectly affect the ability to wire USD abroad. For instance, if there's a forex shortage, banks might delay or limit transactions due to insufficient liquidity in USD, which isn't necessarily an outright legal prohibition but rather a practical limitation influenced by policy. Direct Legality: There's no explicit law or recent regulation directly cited that makes it illegal for banks or the Central Bank to prevent someone from wiring their USD out of TT. However, the practical ability to do so might be severely limited or delayed due to forex shortages or bank policies. While the CBTT conducts monetary policy aimed at maintaining low inflation, financial stability, and supporting economic growth, these objectives align with government economic policies but are executed independently by the Bank. The Bank's use of instruments like the repo rate to influence monetary conditions shows its operational autonomy in day-to-day monetary management. Emergency Controls: The case of the Central Bank relinquishing control over CLICO in 2022 after a period of emergency management highlights that in crisis situations, the government can authorize the Central Bank to take specific actions, indicating a form of control or at least significant influence during emergencies. I digress a bit; the "someone" who is benefiting at a rate of TTD$6.8 vs. TTD$8 on the black market is a joke. Imagine if the global market were to devalue our currency, and now everyone has to pay in excess of TTD$10, and more than likely, a continuous rise. So currently, that "someone" who is benefiting is everyone. As she mentioned, TT is the only country out of the countries she observed that has a consistent decline in USD reserves. So why support uncontrolled "market" driven forces? That doesn't make any sense. T&T’s net official foreign reserves declined by 45.84% between the end of September 2015, when the reserves position was US$10.539 billion, and September 2024. The current administration was elected on September 7, 2015. In its Annual Economic Survey for 2023, the Central Bank disclosed that the demand for foreign exchange-measured by sales of foreign exchange by authorized dealers to the public-totaled US$6.228 billion. Supply of foreign exchange-measured by purchases of foreign exchange from the public by authorized dealers-amounted to US$4.614 billion. That left a net sales gap of US$1.614 billion, of which the Central Bank supplied US$1.342 billion to authorized dealers to support the market. Exchange Rate Pressure: The positive interest rate differential can put downward pressure on the TT dollar. Investors might sell TT dollars to buy USD, where they can earn more interest, leading to a depreciation of the TT dollar if not managed through forex controls or other monetary policies. The cause of the monetary policies is not to benefit "someone" but to account for changes in the market. Every single past administration had the opportunity to steadily increase our USD reserves, but this limitaion and "control" would look bad to the public and jeopardize their political image. I support the current monetary policies and decisions, and thank goodness we have some practical persons influencing these decisions in our current administration. If you want USD, earn USD. If the country wants to enjoy imports of foreign goods, produce more local goods for export. It's that simple. No conspiracy. In summary, the discussion around the TTD's peg to the USD, the influence of the top economic echelon on market dynamics, and the implications of foreign exchange controls versus market liberalization, highlights a complex economic strategy aimed at stability and controlled growth. While there are valid concerns about the equity of these policies, particularly regarding who benefits from the current exchange rate mechanisms, the overarching goal appears to be protecting the broader population from the volatility of global markets and inflation. The Central Bank's policies, supported by government oversight, strive to balance economic stability with the need for foreign exchange, ensuring that while not everyone might be satisfied, the system aims to mitigate the worst effects of economic fluctuations on the general populace. This approach, while not without its critics, underscores a pragmatic response to the unique economic challenges faced by Trinidad and Tobago, advocating for a measured approach to currency management and economic policy-making.

[@jeffpatterson5846]

What is the role of over invoicing and other manipulations in bringing about this problem. The Govt though is slack in how this situation is being managed. Things seem to always happen to us rather than we being proactive in monitoring these situation.

[@dobbinuk]

Hi, I'm from the UK. I'm looking forward to returning to support the Trinidad and Tobago economy in January 2025. What is the best currency to bring? Or is it best to draw TTD from the ATM while there? Listening to this interview makes it sound as though bringing USD is the best approach (but we'll then have to factor in the cost if converting GBP to USD). Any advice would be greatly appreciated 👍

[@kfmendes4550]

I can't tell you which currency to bring to TT but in Jamaica where I am from, its best to come with GBP and Euro because youd get more JMD from those currencies than USD

[@omar.a5947]

Most places (besides the banks) aren’t familiar with GBP as compared to USD, USD will be accepted in private business, You see signs at business who are buying USD, for 7.50 TTD to 1 USD, some times higher, while the banks will give u far less

[@Pr74ys]

​@@kfmendes4550I'm currently on a long stay in T&T from UK and plan to withdraw from my Santander a reasonable but not large amount in local currency on a monthly basis for general subsidies. ^_^

[@marymaureen1529]

😮 I would like to see please please give us the answer because I'm studying these people who are in my position position like you know the cost of living is very very very very very very high already I'm a senior citizen fighting to really make it in a sort of a way with the goods that I have to use just to keep Body and Soul together I would really really like to know if there's an answer and how could it be implemented how can I help

[@gerardhart9052]

They should subsidize foreign exchange earners and allow some drifting of the dollar. However this will not favor their political financiers who refuse to pivot.

[@brandonseenath2088]

To many venezuelans and favors

[@adrianseales6806]

Please, please that does not belong in this discussion.

[@nicklike]

If all these companies have all this USD then their should be incentives for these companies to pay their taxes in USD to help with this crisis we're in atm

[@potato2771]

they even said that you cannot buy from family

[@datahark]

Excellent interview.

[@thatchinaboi1]

Every country's inflation problem is at least partially a result of monetary expansion of the US Dollar and THE EXORBITANT PRIVILEGE of the US Dollar.

[@jesterraj]

ask how the pm finiancers are abele to get while citizens cant?

[@sandrawatson6047]

What are the reserves fig. in the other islands in comparasion to T&T

[@Sipmeister007]

Don't think the Trinidadian government has ever take the time to explain this to their citizens... The Minister's budget speech said the reserves were healthy, a ridiculous statement to make given the restrictions imposed on nationals.

[@kmich293]

I learnt a lot, Thank you both.

[@jaronbalfour3711]

Who closed down petrotrin

[@eliling9841]

People seems to be so onto misinformation!! petrotrin was loosing billions every year !!!!! Billions..

[@jeffreydookwah7056]

Too much politial teefin! Trinidad lead's d pack in CORROUPTION!