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  • 2 days ago
A high level meeting took place with the Central Bank Governor, three Cabinet members and key stakeholders in the energy sector on what the Bank said were "measures to address ongoing foreign exchange challenges."

The Central Bnak said participants expressed support for a series of near-term initiatives .

Juhel Browne reports.
Transcript
00:00Central Bank Governor Larry Hawaii was joined by Finance Minister Devon Jernath Tanku,
00:05Planning Minister Dr. Kennedy Swart Singh, and Energy Minister Dr. Rudal Munilal at a meeting
00:10with who the Central Bank identified as key stakeholders in the energy sector that, quote,
00:16centered on measures to address ongoing foreign exchange challenges, end quote.
00:21The Central Bank said the meeting at its conference facilities was constructive and collaborative,
00:26with participants expressing support for a series of near-term initiatives to improve foreign exchange availability and distribution.
00:34The Central Bank said, quote, discussions focused on practical actions to enhance the efficiency of forex allocation
00:42and support efforts to ease current market constraints, end quote.
00:46Late last month, the Energy Chamber raised concerns about recent developments in the Pointe-Lysus industrial estate,
00:52where Canada-based Methanex indefinitely idled its large Titan Methanol plant after it did the same with its Atlas plant,
01:00following Nutrien's controlled shutdown of its Trinidad nitrogen operations in October last year.
01:07The Energy Chamber said, quote,
01:09the shutdown of these facilities has weakened Trinidad and Tobago's exports of these products
01:14and will have an impact on the country's foreign exchange earnings, end quote.
01:20The Central Bank did not make any mention of the Energy Chamber's statement,
01:24Methanex or Nutrien,
01:26but the Central Bank did point out that the energy sector conversions remain
01:30the primary source of foreign exchange inflows,
01:33accounting for approximately 60 to 75 percent of total market conversions.
01:39However, the Central Bank added that over the past decade,
01:42foreign exchange sales by energy companies have declined by an estimated U.S. $1.2 billion annually,
01:49significantly reducing the supply available to the domestic economy,
01:53but at the same time, demand for foreign exchange continues to outpace supply.
01:58The Central Bank said while improvements are expected in the supply of local oil and gas from late 2027,
02:06it is working in close collaboration with the line ministries
02:09as it recognizes the need for targeted short-term interventions.
02:14The Central Bank said Governor Hawaii expressed optimism that continued coordination among stakeholders
02:20will support more effective management of the foreign exchange market
02:24and contribute to greater stability in the period ahead.
02:28Jewel Brown, TV6 News.
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