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  • 5 weeks ago
The business community is hailing the finance minister's budget as a decisive step forward.


Vivek Charan, chairman of the Confederation of Regional Business Chambers, says the government was already building strong ties with businesses even before the budget. But he cautions that to truly strengthen the economy, a new approach to foreign exchange is essential a shift that could shape the country's financial future.

Nicole M Romany tells us how.
Transcript
00:00According to Vivek Chauran, Chairman of the Confederation of Regional Business Chambers,
00:05the country needs a fundamental shift in mindset around forex and business.
00:11He says, while companies earn foreign exchange through exports and other streams,
00:17those gains are not reaching the ordinary citizen.
00:20He tells us, the only forex legitimately accessible comes through commercial banks,
00:25yet as sectors like manufacturing and exports grow, companies continue to demand more from the government,
00:32even when no additional forex exists.
00:35What I think is necessary is that even for SMEs and people who are diversifying into exports or earning some sort of forex revenues,
00:46is the idea of self-sufficiency and the idea of moving away from dependence.
00:51Dependence, 100% dependence on getting your forex from the government to getting your forex from the commercial banks
01:03is not going to be helpful in the short and medium term.
01:09He says many small businesses are facing major challenges accessing forex,
01:15and he hopes the government will take steps to provide support.
01:19You and myself, I'm in that same situation, Merlin.
01:22We need the forex now, and the forex isn't forthcoming.
01:26The idea is that we are waiting to hear what the government has to say about the Ex-Im Bank.
01:32Are they going to fence around a portion of forex in the Ex-Im Bank that SMEs can access?
01:41He emphasizes that this situation underscores the critical and urgent need for businesses to diversify.
01:50And the best thing that the government can do is to make it as easy as possible,
01:54remove whatever barriers that can happen,
01:58and create some sort of mechanism whereby many of the barriers to cost when it comes to diversification
02:09into, let's say, light manufacturing and so on can be removed.
02:13Charon acknowledges that there are no easy answers,
02:17but says the new administration's open lines of communication with the business community
02:23offer a glimpse of hope, a sign that the business sector may finally see a path forward.
02:30Nicole M. Romany, TV6 News.
02:33Nicole M. Romany, TV6 News.
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