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 worse.
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.
