Finance Minister Colm Imbert needs to “get real” and understand that accessing forex at commercial banks is a nightmare.
This view is shared by businessman Rajnanan Ramsaran, founder of Ramsaran Dairy Products, and president of the Foreign Used Car Dealers Association, Visham Babwah.
Through his attorney Richard Jaggessar, Ramsaran has written to the International Monetary Fund (IMF), the Central Bank, and the Auditor General after his Freedom of Information request for information on forex distribution was denied by the Finance Ministry, which stated that the information does not exist.
Speaking to the Express by phone yesterday via conference call with his attorney, Ramsaran stated that there is a lack of transparency and equity in forex distribution. He said that what he obtains from the bank is inadequate, and he is often told they do not have any available.
“Right now, I am owing for a shipment of containers and I am scraping to pay. I want to order more, and the company told me I have to pay 50% of the order, or they are not going to produce any cartons for me. Right now, I have run out of cartons for the soursop drink, so that product is not on the market for me,” he said.
He imports these environmentally friendly cartons from the Dominican Republic, as they are not available in Trinidad and Tobago. “We are not addressing this problem and holding the bull by the horns. There is no equity in forex distribution,” he stressed, adding that there is need for this issue to be addressed. He pointed out as well that there are no cries or complaints from certain businesses over lack of forex.
Small and medium businesses are suffering, and the forex woes cause the prices of products to be inflated and stymie growth, he said. “If they ease up this forex crisis, the prices of goods and services will drop so drastically, you wouldn’t believe it,” he added. Ramsaran also shared a letter he wrote to Opposition Leader Kamla Persad-Bissessar, which was copied to the Parliament’s Public Accounts Committee (PAC), urging them to address the forex issue. In his letter, he stated that the PAC’s oversight could provide essential transparency and shed light on whether public funds and forex allocations are being equitably distributed and properly recorded.
He requested that Persad-Bissessar directly pose questions to Finance Minister Colm Imbert and highlight how these deficiencies affect businesses and the broader economy. A parliamentary debate on this issue could further strengthen calls for urgent reform, he added.
Lack of transparency
Babwah told the Express by phone that an independent body or person is needed to ensure transparency in forex distribution. He said that, contrary to reports, used car dealers also face significant challenges in sourcing forex.
According to Babwah, food importers have two avenues to access forex—via the EximBank and the commercial banks—while car importers have only one: the banks. He said they are constrained as they are not receiving the necessary USD and are forced to purchase from the black market. “We owe our suppliers millions and we have to turn to other sources to get our forex,” he said.
He issued a call for the establishment of an independent body to regulate forex, citing a lack of transparency and no answers from the Central Bank, the commercial banks, and the Finance Ministry.
