News & Current Affairs - Sunday, April 12, 2009 19:31
Regional: Trinis, fearing currency devaluation, hoard US dollars
By Ashmita Maharaj, Associate EditorVia Shaliza Hassanali, Trinidad Guardian —
Fear of an impending depreciation of the T&T dollar, after the Fifth Summit of the Americas, is forcing citizens to buy and hoard US currency. And this situation has created a shortfall at commercial banks in T&T during the last few weeks. While the shortage already has been causing many who depend heavily on the US dollar to reel under pressure, economist Indera Sagewan-Alli is predicting that the hoarding will intensify and the situation will only get worst.
Sagewan-Alli said sourcing US currency at local banks during the last few weeks had proven nothing short of a headache. “Three weeks ago, my husband put in a request for US currency at a bank. Just this week the bank informed him that he would get the US, but only in the form of cheques and in small increments.” The shortage, Sagewan-Alli says, stems from people buying and hoarding US dollars, based on reports that Government plans to depreciate the TT dollar after the summit.
“People fearing the devaluation are choosing to convert their TT dollars into US dollars. They are waiting for that time when they anticipate there would be a devaluation and would be able to make a capital gain.” The buying price for US$1 at commercial banks is $6.30. But Sunday Guardian was reliably informed that some people were paying black market prices—as much as $7—for US$1, because of the short supply. “Those who are hoarding the US are waiting for the best price to sell. As we speak, the hoarding is intensifying. The fear of a devaluation is there, and it’s worsening,” Sagewan-Alli explained.
Sagewan-Alli said if the Central Bank failed to inject more US currency into the economy during the coming weeks, black market prices would soar. “There are no indicators that black market prices would fall.” In light of the fears, Sagewan-Alli is calling on the Central Bank to come clean and tell the public whether the dollar will be devalued. “The Central Bank ought to put the country’s mind at rest.” Sagewan-Alli said the Central Bank’s supply was constrained by its ability to pump US dollars into the system. “Our non-energy capacity to generate foreign exchange through exports is very limited.”
She also commented on RBTT Bank’s, Republic Bank’s, First Citizens’ and the Bank of Baroda’s move to reduce their prime lending rate from 13 to 12.75 per cent in April. While RBTT stated in a published notice its changed rate was concurrent with the decrease in the Central Bank’s repo rate from 8.75 to 8.50, and in keeping with changing market conditions, Sagewan-Alli said the .25 per cent reduction was not good enough. “We need to see lending rates much like what we are seeing around the world, which is one or two per cent and in some cases even less.”
Please also see related FOREX story, ‘Standard & Poor’s: Barbados economic outlook negative, US dollar peg in jeopardy’
1 Comment
Global Voices Online » Americas: The 5th Summit Gets Underway from Texas, United States
Leave a Reply
- Remembering Sam Lord’s Castle: the tragic fairytale of Barbados’ best hotel
- Constitutional reform referendum defeated in St. Vincent & the Grenadines
- Words hurt: is it time for hate speech legislation in Barbados?
- Are Barbados’ child support and paternity laws skewed against men?
- On World AIDS Day 2009, sexual minorities are still criminals in the Caribbean
- Barbados school boys allegedly beaten by teacher, caught on tape
- Barbados signs visa waiver with European Union
- Barbados announces amnesty for illegal CARICOM immigrants
- Sustaining satisfaction: Tourism in a time of trouble
- Regional: Trinidadians unimpressed with Summit of Americas $500m bill
- Full summary of the Government of Barbados’ 2009/10 budget
- We honeymooned in 1973 at the Castle and seeing the condition it's in today brea...
- There is an inherent bias against men in the laws relating to paternity and chil...
- Darlene...last time I checked he was in Cayman Islands but i am not sure if he i...
- What about Sam Lord's family? How do you think we feel? To see the property in...
- i agree with you chery too...
- Lejos del usa 6 I agree with your analysis that the homosexuals propaganada is n...
- HEAVEN: When I married my ex he was living in Bermuda, I believe his son was a...
- Congratulations, Vincies, the old saying " if it aint broke, don't fix it" appli...
- Bandwagonist
One Trinidadian blogger’s take on life, technology, entertainment and politics - Barbados Free Press
Unconventional citizen journalism on social and political happenings in Barbados - Barbados In Focus
Astounding photography by the talented Barbadian photographer Keith Clarke - Barbados Nation
Barbados’ most widely read daily newspaper - Blah Bloh Blog
Blog of a thirty-something, moderate-liberal, working single mother in Grenada - Caribbean 360
Aggregator of news and current affairs headlines in the Caribbean - Global Voices Online
A nonprofit, global collective of bloggers and citizen journalists - Jamaica Gleaner
Jamaica’s leading daily newspaper - Lullabies, Fairytales & Self-Delusions
The ‘must read’ blog of a prolific blogger from St. Vincent & the Grenadines - Project Diaspora
An advocacy blog made up of members of the African diaspora worldwide - The Good, The Bad & The LOL
A Barbadian’s entertaining take on the social, political and cultural currencies on the island - The Wisdom of Whores
Blog of HIV/AIDS specialist, Elizabeth Pisani - Trinidad Guardian
Trinidad & Tobago’s leading daily newspaper - Wuz De Scene
An entertaining though irreverent Trinidadian social commentary blog
Gender & Sexuality, Social Advocacy - Dec 1, 2009 17:35 - 15 Comments
On World AIDS Day 2009, sexual minorities are still criminals in the Caribbean
More In Social Advocacy
- Squatter communities polluting Barbados groundwater
- Poverty and shelterlessness: an increasingly hopeless scenario in Barbados
- Barbados has “unique poverty”
- State-owned UDC takes woman’s life savings, and two years to give her new home
- Expert calls for poverty mindset to be changed in Barbados
Political economy - Oct 15, 2009 17:47 - 0 Comments
Barbados presents new immigration policy for public review
More In Political economy
- IMF to Jamaica: “There will be pain”
- David Thompson to fellow CARICOM Prime Ministers: Butt out.
- Full summary of the Government of Barbados’ 2009/10 budget
- Ralph Gonzalves blasts Barbados’ immigration policy, threatens CSME withdrawal
- CARICOM disjointed again, this time over ALBA
News & Current Affairs, Gender & Sexuality - Dec 3, 2009 10:21 - 0 Comments
Barbados Family Minister says men deserve more legal rights to their children
More In Gender & Sexuality
- On World AIDS Day 2009, sexual minorities are still criminals in the Caribbean
- The same sex marriage debate: separating religious rites from civil rights
- Words hurt: is it time for hate speech legislation in Barbados?
- A Young Spin on an Old Tale: Youth and HIV/AIDS
- Are Barbados’ child support and paternity laws skewed against men?







[...] Barbados blog Bajan Dream Diary has been following the Trinidad and Tobago mainstream media reports and republishes two stories – one which suggests that T&T citizens are unimpressed with the amount of money being spent on the Summit, and the other which speculates about a possible devaluation of the Trinidad and Tobago dollar post-Summi…. [...]