Trinidad and Tobago’s economic stability has come under international scrutiny as Moody’s Investors Service revised the country’s credit outlook from stable to negative. The decision has sparked intense political debate between government officials and opposition figures regarding the management of the nation’s foreign exchange reserves.
Opposition Parliamentarian Brian Manning revealed concerning statistics, noting that Trinidad and Tobago’s foreign exchange coverage has significantly decreased from 8.3 months to 5.4 months. Manning accused the current administration of depleting US$600 million from foreign reserves without providing adequate explanation for the expenditure. He further alleged that an additional US$400 million had been withdrawn from the Heritage and Stabilisation Fund under similar circumstances of financial opacity.
The former finance ministry official expressed grave concerns about Finance Minister Davendranath Tancoo’s economic stewardship, stating, “The economy has been in free fall ever since this clueless Minister of Finance has taken charge.” Manning warned that the Moody’s outlook revision likely precedes an impending credit rating downgrade and potential currency devaluation.
Opposition Senator Vishnu Dhanpaul addressed previous accusations of being unpatriotic for his economic warnings, asserting his commitment to the nation’s wellbeing. When questioned about appropriate government response measures, Dhanpaul ironically suggested, “The Minister will fix it,” indicating skepticism about the administration’s capability to address the situation.
Finance Minister Tancoo responded to the rating adjustment with measured optimism, emphasizing the government’s confidence in its macroeconomic strategies. In an official ministry statement, Tancoo highlighted that Moody’s analysis employed a narrow definition of foreign exchange reserves that excluded significant assets including the Heritage and Stabilisation Fund.
The Minister characterized the outlook revision as premature, arguing that rating agencies should have allowed more time for recently implemented policies to demonstrate effectiveness. These policies include a comprehensive agenda aimed at economic revitalization, sustainable fiscal management, and foreign reserve stabilization.
Despite the negative outlook, Tancoo welcomed Moody’s decision to maintain Trinidad and Tobago’s Ba2 credit rating, citing the nation’s substantial fiscal buffers equivalent to 45% of GDP and anticipated positive developments in oil and gas production by 2027.