Online shopping is not to be blamed for the shortage of foreign exchange in this country, the Opposition said on Wednesday.
Instead, they insist it is the polices of the Government that are the cause of the problem, including the closure of the State-owned oil refinery in late 2018.
Ironically, the Prime Minister said last week that decision saved the nation from nation from default as he also said any devaluation of the TT dollar at that time would not have resulted in "a single additional US dollar."
00:00 The issue of foreign exchange is not an increase in demand of online shoppers.
00:06 It is not as a result of this drastic increase in the requirement of foreign exchange for raw materials to increase manufacturing in this country.
00:18 Senator Damian Ryder during the opposition's media conference on Wednesday,
00:22 as he responded to statements made by Finance Minister Colm Imbott in a media release on Sunday.
00:27 The Finance Minister said that among the several reasons for the increased demand of foreign exchange in Trinidad and Tobago
00:34 is the growth in the economy and an explosion in online shopping over the last several years,
00:40 which is driving up the usage of US dollar-dominated credit cards.
00:44 Our current shortage is due to a collapse of supply of foreign exchange.
00:51 A collapse in foreign exchange revenues coming into our country brought about by people's national movement incompetence in government.
01:02 Senator Ryder pointed out one particular policy of the government, which he called a pivotal moment.
01:07 I'll remind you, but it was the closure of the PetroTrain refinery.
01:12 This was a national asset that was earning upwards of over US $350 million in revenue per annum until its closure, Senator Mark.
01:24 This is a proven revenue earner for the Trinidad and Tobago economy, a regular foreign exchange earner wiped out by the PNM.
01:34 During last week's post-Cabinet media conference,
01:37 Prime Minister Dr Keith Rowley said the government's decision to close down the oil refinery at Pointe-a-Pierre
01:42 was examined during the Cabinet's working retreat.
01:45 The Prime Minister said that in August of 2018, there was a check to be written for US$820 million,
01:52 which the government did not have and which the then PetroTrain could not service.
01:57 And you could imagine, if we didn't go as far as default, what about downgrade?
02:04 Because if you have a debt that you can't service like that, or you're struggling with, who's going to lend you money?
02:11 The Prime Minister defended the government's decision to close down the refinery, which it has yet to lease or sell.
02:17 He recalled the one option then being suggested to the government was to devalue the Trinidad and Tobago dollar.
02:23 But it wasn't going to give us a single additional US dollar.
02:28 But of course, the book like this that you were buying for $5, before the devaluation, the same book will cost $12.
02:36 And you think you're better off?
02:38 Senator Leiter said the nation's current foreign exchange dilemma is not affecting the multinationals and large conglomerates that operate locally.
02:47 They are the ones that are getting preference today for US dollars in the banks.
02:53 When they're getting millions of dollars in foreign exchange from the banks,
02:59 it is the small, micro, and medium enterprises in this country that will continue to feel that squeeze.
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