The Trinidad and Tobago Chamber of Industry and Commerce has issued an urgent appeal for coordinated national action to address the country’s escalating foreign exchange crisis. In a December 19 statement accompanied by a comprehensive working paper, the business organization warned that inaction is no longer viable for the national economy.
The Chamber’s analysis identifies three primary drivers of the forex shortage: the current exchange-rate regime that has maintained an overvalued TT dollar for over a decade, declining energy production that traditionally supplies over 80% of forex inflows, and excessive dependence on imported goods across critical sectors including food, vehicles, and pharmaceuticals.
Businesses throughout the economy are experiencing severe operational challenges, including delayed access to foreign currency, rising operating costs, and diminished competitiveness. The Chamber notes that black market currency trading signals deepening market imbalances that threaten economic stability.
The organization proposes a multi-stakeholder approach involving government, the Central Bank, and private sector collaboration. Key recommendations include aligning the exchange rate with market demand and supply through a gradual transition to a more flexible and transparent framework. The Chamber emphasizes that timely, coordinated action offers a more orderly path toward stability than forced corrections later.
For the private sector, the Chamber advocates collective measures to increase forex inflows through profit repatriation, foreign direct investment attraction, and leveraging remittances through formal channels. Import substitution initiatives are also encouraged to reduce structural dependence on foreign goods.
The warning comes amid recent negative outlook revisions from major credit rating agencies Moody’s and Standard & Poor’s, both citing concerns about declining forex reserves.