Trinidad and Tobago Economists Call for Exchange Rate Review Amid Foreign Exchange Shortages

Analysts are calling for a review of Trinidad and Tobago's exchange rate regime due to persistent foreign exchange shortages. Economists Dr Ronald Ramkissoon, Marla Dukharan, and former Finance Minister Selby Wilson argue that the issue deserves serious consideration as businesses and households continue to face difficulties accessing foreign currency through the official banking system.

Ramkissoon notes that while Trinidad and Tobago operates a managed float exchange rate regime in theory, it has remained virtually unchanged for years at around 6.76-6.78 TT dollars per US dollar. He argues that this effectively makes the exchange rate fixed, and suggests calling it a devaluation instead.

Dukharan also supports gradual market-based adjustments, but now advocates for a more significant depreciation of the Trinidad and Tobago dollar to around 8 TT dollars per US dollar, which she believes would help alleviate the black market's influence. She proposes re-introducing an auction mechanism that allowed for small changes in the exchange rate.