MP Tancoo Demands Transparency in Forex Distribution
MP for Oropouche West and the UNC’s shadow on the Ministry of Finance, Dave Tancoo says that T&T’s distribution of foreign exchange is riddled with secrecy, bias and corruption and is demanding that the Government provide clear and immediate answers as to how scarce foreign exchange is being distributed by Central Bank.
According to Tancoo, “This is the PNM’s Cosa Nostra at work and the decade-long crisis that we are in now is the result of this Rowley-led Government’s deliberate facilitation of the few at the expense of the many”.
The Opposition MP alleges that during the last ten years under this PNM, the Government’s discriminatory policies in allocating forex has openly favoured certain groups, resulting in their rapid expansion at the expense of others, especially the micro and small business enterprises.
Tancoo asserts, “Monopolies have been created simply because they could access forex while others in the same industry could not. The resultant effect is that the prices of goods and services have increased, because importers were forced to pay black market rates, making them uncompetitive against the mega players with easy access”
Recent newspaper articles speculate that this country could be facing a shortage of basic food items because of the unavailability of foreign exchange by the Exim Bank to wholesale importers for two months. Some of these importers are claiming to be already blacklisted by foreign suppliers. MP Tancoo says that while this is unfortunate, the Opposition has been for the longest time warning the country about the severity of the Forex shortage impact, calling on the Finance Minister to make drastic interventions.
“Those businesses have started to speak out because they are losing money as a result of this unequal competition. Beyond that, we are also in danger of investors closing their doors, adding to the already massive unemployment and underemployment levels in this country. A recent report advised that 96.2% of Trinidad and Tobago’s staple foods are covered by imports. As at August last year, our net foreign reserves equated to less than eight (8) months import cover; our August 2024 position has not improved. What has the Government been doing to address this?” asks Tancoo.
While the Government has repeatedly argued the point that there is no forex shortage, Tancoo says that while this may be so for a select few, for the vast majority of businesses and citizens, there can be no arguing that accessing Forex has been near impossible.
The Oropouche West MP also had this to say about Finance Minister’s reply to the wholesalers’ pleas, that a review of the Forex window is happening, “Minister Imbert’s comment was deliberately vague so as to create insecurities, fear and panic that the facility may be shut down, further traumatizing these businesses. And it worked. Every commentator concurred that access to Forex may be further compromised.”
Tancoo says that these mind games being played by the Minister must stop, “Imbert’s policies have already resulted in suppliers now demanding up-front payment or adopting extremely harsh repayment policies, including higher interest rates and shorter credit periods. These additional costs incurred means that the prices of imported goods will be higher.”
Furthermore, according to the Opposition’s shadow on Finance, “those PNM-favoured businesses that have unimpeded access to Forex either through their subsidiaries or sibling companies in the finance sector (including banks) will now have an artificial competitive advantage which they will use to generate massive profit margins – effectively having a strategic chokehold on their less fortunate competitors and on the backs of the population.”
MP Tancoo is calling on the Government to get its act together and implement real Forex relief measures. “Effectively, the Government has weaponized Forex against Micro, Small and Medium sized Enterprises (MSME’s). What is needed now is not some limited review but a comprehensive and public review of the Government’s foreign exchange policy and practices which has brought most businesses to their knees in favour of their PNM associates, who have no problems accessing Forex to allegedly pay to talk to the dead or import carving pumpkins for Halloween.”