Even as it evaluates complaints that Trinidadian companies are absorbing large amounts of foreign exchange for transactions here and in the Twin-island Republic, Vice President Bharrat Jagdeo on Thursday said that government will intervene if there is a currency shortage.
While there have been persistent complaints by persons in the business community about the shortage of foreign exchange at local banks, Jagdeo said that when one considers the aggregate available this is not the case. However, because there is no inter-banking mechanism, some banks have a smaller supply, he explained.
“When I look at the aggregate amount of foreign currency, some banks have significantly more than their requests. In a foreign currency market, you should have an inter-bank market for foreign currency, and that is how systems operate in equilibrium,” he reasoned.
