分类： business

Central Bank Governor Larry Howai has addressed widespread misconceptions about the institution’s role in Trinidad and Tobago’s foreign exchange (forex) market. Speaking at the TT Stock Exchange’s Capital Markets and Investor Conference in Port of Spain on October 24, Howai emphasized that the Central Bank accounts for just over 20% of forex entering the financial system, with the remaining 80% sourced from private entities and individuals. He clarified that while the bank intervenes to stabilize supply, the majority of forex distributed through commercial banks originates from private channels. Howai stressed the need for long-term solutions to broaden the country’s capacity to earn forex, rather than relying on central bank interventions. He highlighted the importance of boosting exports, both traditional and non-traditional, such as those from the creative sector. Howai, a former finance minister, also discussed the challenges of managing interest rates, inflation, and forex outflows, noting that policy tools like the repo rate and reserve requirements often yield mixed results. He pointed out the narrowing interest rate differential between US and TT Treasury bills, which could influence local investment behavior. Howai underscored the critical relationship between the Central Bank and the Ministry of Finance in managing liquidity and inflationary pressures, advocating for continued public engagement to refine forex distribution mechanisms.

The Trinidad and Tobago Stock Exchange (TTSE) is set to transition to a one-day trade settlement cycle (T+1) by 2026, as part of its broader efforts to modernize operations and align with global standards. CEO Eva Mitchell made the announcement during her opening remarks at the TTSE’s 2025 Capital Markets and Investor Conference held at the Hyatt Regency in Port of Spain on October 24. Mitchell highlighted that the exchange had already reduced its settlement cycle from T+3 to T+2 in 2024, and the move to T+1 will further enhance market efficiency. The T+1 system, already adopted by major exchanges like the New York Stock Exchange, will reduce settlement time to a single day, improving liquidity and minimizing counterparty risk. Mitchell emphasized that this transition aligns the TTSE with global best practices for advanced exchanges. Alongside the settlement cycle change, the TTSE is rolling out a series of technology upgrades, including an updated depository portal set to launch in November. The new portal promises faster processing, smarter systems, and enhanced scalability, while also enabling the collection of valuable data to better understand market trends and opportunities. Additionally, the exchange introduced TOBI, a user-friendly digital assistant designed to help investors access information and ask questions about the market and its services. Mitchell also revealed that the TTSE has completed infrastructure for a new Spot Market to support derivatives trading, marking a first for the Caribbean. The exchange is also exploring the introduction of a ‘market maker’ framework to improve liquidity and price stability. In line with its commitment to sustainability, the TTSE has partnered with IDB Invest to develop a Green Bond Guide and joined the United Nations Sustainable Stock Exchanges (UNSSE) Initiative. Mitchell acknowledged the subdued local market but urged stakeholders to focus on long-term growth, emphasizing the importance of modernizing the market, embracing innovation, and fostering transparency and trust.

The closure of Nutrien’s operations at the Point Lisas Industrial Estate in Trinidad has sparked significant concerns over the management of the country’s energy sector. Former Energy Minister and Prime Minister Stuart Young attributed the shutdown to what he termed “unfortunate mismanagement,” warning of its potential to undermine Trinidad and Tobago’s global competitiveness. The shutdown, confirmed on October 23, has already begun to disrupt the supply of carbon dioxide (CO₂) to local and regional manufacturers, including those in the carbonated beverage industry, a key export sector for the nation. Nutrien cited port access restrictions and unreliable natural gas supply as primary reasons for the decision, which has impacted its Trinidad Nitrogen operations’ cash flow over an extended period. Despite the closure, Nutrien remains confident in meeting its 2025 nitrogen sales targets, supported by its North American production. Young emphasized the critical role of the energy sector as a major foreign exchange earner and employer, stressing the importance of maintaining investor confidence and fostering respectful relationships with energy companies. He criticized the current government for failing to uphold these principles, warning of potential long-term plant closures and broader economic fallout.

The National Gas Company of Trinidad and Tobago (NGC) has successfully secured alternative sources of carbon dioxide (CO2) for the food and beverage industry, following the abrupt shutdown of Nutrien, the primary supplier. The announcement, made on October 24, comes in response to widespread concern over potential disruptions to CO2 supplies, which are critical for various domestic and industrial applications. Nutrien’s closure on October 20 had sparked fears of a shortage, particularly affecting Massy Gas Products Trinidad Ltd, the main distributor of CO2 to local manufacturers. NGC has collaborated with key stakeholders, including Proman Group and Plipdeco, to ensure a seamless transition. Proman has committed to supplying the same volume of CO2 previously provided by Nutrien, with no price increases for customers. Engineering pipeline tie-ins are currently being installed, with completion expected by October 27. NGC expressed regret over Nutrien’s indifference to the potential hardships caused by its shutdown but emphasized that the crisis has been averted. Meanwhile, former Energy Minister Stuart Young criticized the government’s handling of the situation, accusing it of aggressive tactics that led to Nutrien’s closure and warning of broader regional impacts on CO2-dependent industries.