RECENTLY appointed Central Bank Governor Larry Howai yesterday said finding a solution to Trinidad and Tobago’s foreign exchange challenges remains a priority, even as he admitted a long-term fix is still some way off.
Howai made the statement during a meeting with representatives of the Bankers’ Association of Trinidad and Tobago (BATT), held as part of a series of key stakeholder engagements hosted by the Central Bank.
‘Robust collaboration’
According to a statement from the Central Bank, Howai emphasised the importance of “continued and robust collaboration” between the Central Bank and BATT, particularly as the financial sector navigates the current economic environment.
“He reaffirmed the bank’s commitment to working closely with the banking community to identify pragmatic solutions to challenges in the financial sector in the best interests of the people of Trinidad and Tobago,” the release stated.
“During the meeting, discussions covered a review of the economy, financial system liquidity, issues of foreign exchange supply and demand, and evolving requirements for Know Your Customer (KYC) protocols for all bank customers to assure continued financial stability. The governor indicated that finding a solution to the ongoing problems in the foreign exchange market was a priority. He underscored that a long-term solution could only occur when mechanisms are found to bring demand and supply into equilibrium, but that this is still some way off. The banks agreed, and provided their recommendations for easing some of the problems faced by consumers. The governor committed to considering those recommendations for implementation,” it stated.
BATT also inquired about the way forward for the implementation of a Unified Payments Interface (UPI) in Trinidad and Tobago.
The banks signalled their support for progressing the initiative in a “manner that would be most efficient for the banking system while achieving the potential benefits of this new payment system.”
The meeting also addressed key regulatory updates.
“The meeting highlighted the bank’s commitment to open dialogue and constructive engagement on key matters critical to economic stability and development,” it stated.
Howai encouraged the banks to work with the Central Bank to explore solutions and made the point that, unless there are negative knock-on effects that are detrimental to the economy, he would like to see flexibility and creativity in the approaches to addressing challenges.
Meaningful progress
He also expressed confidence that through continuous engagement and the sharing of ideas and perspectives, meaningful progress could be achieved in a number of areas.
“The Central Bank will continue to work closely with BATT and its members to ensure that the financial system remains resilient, efficient, and responsive to the needs of the wider community,” Howai said.
In attendance were vice-president of BATT and CEO of JMMB Bank (T&T) Ltd Shawn Moses; CEO of Republic Bank Ltd Nigel Baptiste; CEO of First Citizens Bank Ltd Karen Darbasie; managing director of RBC Royal Bank (T&T) Ltd Marc Jardine; managing director of Citibank (T&T) Ltd Mitchell De Silva; managing director of CIBC Caribbean Bank (T&T) Ltd Mahadeo Sebarath; managing director of ANSA Bank Ltd Savon Persad; managing director of ANSA Merchant Bank Ltd Stephen Grell; and regional director of Corporate and Commercial Banking at Scotiabank (T&T) Ltd Randal Cezair.
