Carib Scope

分类： business

  • Questions and answers about the foreign exchange market

    Questions and answers about the foreign exchange market

    HAVANA – Cuba’s implementation of a new foreign exchange market structure has sparked widespread public discussion and legitimate questions across social media platforms and public forums. In response to growing public inquiries, Central Bank of Cuba Director of Macroeconomic Policy Ian Pedro Carbonell Karel has provided detailed explanations regarding the country’s unconventional monetary approach.

    The temporary coexistence of three distinct exchange rates represents a strategic measure designed to simultaneously protect essential goods and services, stimulate foreign currency generation, and regulate monetary flows. This multi-tiered system, contrary to some public perceptions, was never intended as an immediate solution to eliminate Cuba’s informal currency market overnight, but rather as a gradual, progressive mechanism toward eventual exchange rate unification.

    Carbonell Karel emphasized that the floating exchange rate concept applied to Segment III allows for dynamic adjustment according to market conditions and economic environment factors, moving away from fixed exchange rate paradigms. This flexibility enables the rate to more accurately reflect economic realities while reducing distortions and diverting currency formation from speculative informal spaces.

    The macroeconomic policy director outlined several consumer benefits, including reduced volatility compared to informal alternatives, more stable price formation mechanisms, and enhanced financial security through official channels. As the market consolidates, both individuals and non-state enterprises will be able to conduct foreign currency transactions through regulated financial institutions, diminishing fraud risks and improving consumer protection.

    Regarding inflation concerns, Carbonell Karel noted that exchange rate modifications contribute to creating favorable conditions but sustained price stability requires complementary measures including monetary emission containment, increased goods and services supply in national currency, and reduced internal dollarization pressures.

    The Central Bank official also addressed specific stakeholder concerns, clarifying that international collaborators and aid workers receive the Segment III official rate for income exchange, while MLC account balances can be converted to Cuban pesos through authorized digital platforms without commercial margins.

    This gradualist approach allows economic actors sufficient time to adapt cost structures, pricing models, and investment decisions while developing sustainable economic reactivation mechanisms aligned with Cuba’s unique economic circumstances.

  • Aurora Gold Mines’ workers down tools to press demands for pay hike

    Aurora Gold Mines’ workers down tools to press demands for pay hike

    Workers at Aurora Gold Mine (AGM) initiated a brief work stoppage on Sunday morning to emphasize their demands for improved compensation packages, highlighting ongoing tensions between labor and management at the Cuyuni mining operation. The industrial action, which lasted approximately 52 minutes between 7:18 AM and 8:10 AM, specifically involved employees from the Mills Department who temporarily halted operations at the mills round pad area.

    The Chinese-owned mining company, operated by Zijin Mining since its acquisition in August 2020, confirmed the incident resulted from ongoing negotiations regarding proposed wage adjustments. According to company statements, the matter was resolved following discussions between human resources representatives and union officials, including direct communication with Dawchan Nagasar, General Secretary of the National Association of Agricultural, Commercial and Industrial Employees (NAACIE).

    Negotiation dynamics reveal significant disparities between worker expectations and management offers. Union representatives initially sought a 20% wage increase for both 2025 and 2026, while Zijin Mining proposed substantially lower figures of 6% for 2025 and 8% for 2026. The union has since moderated its demand to 10% annually, though Nagasar emphasized this does not represent a final settlement.

    Beyond base wages, negotiations encompass multiple compensation elements. The night premium for 12-hour shifts has seen progressive increases from just over GY$20 to the current offer of GY$200 per hour. Similarly, leave allowances have doubled from 4% to 8% of previous year’s basic salary. The company has also proposed enhancing annual leave entitlements, suggesting additional days based on years of service.

    Workers express growing frustration, having not received wage increases since 2023 despite expanding operational responsibilities and infrastructure growth. Sources indicate Zijin Mining has expanded mine infrastructure by approximately 200% and tripled mill capacity since assuming control. Current compensation ranges from GY$600 hourly for unskilled workers to GY$700 for skilled positions.

    With critical meetings scheduled with the Labor Minister on Monday and Zijin Mining representatives on Tuesday, the situation remains fluid. Workers have issued an ultimatum, threatening complete operational shutdown if their demands remain unmet by Tuesday, potentially escalating the labor dispute significantly.

  • Small Business Association calls for OUR and JPS to reconsider 7% bill increase

    Small Business Association calls for OUR and JPS to reconsider 7% bill increase

    KINGSTON, Jamaica — The Small Businesses Association of Jamaica (SBAJ) has launched a forceful appeal against Jamaica Public Service (JPS) and the Office of Utilities Regulation (OUR), urging them to abandon a proposed seven per cent increase in electricity rates. SBAJ President Garnett Reid emphasized that Jamaican consumers and businesses already contend with some of the world’s highest energy costs, making the timing of this hike particularly detrimental.

    Reid questioned the justification for the increase, pointing to the utility company’s historical profitability. “Given the billions in profits accumulated over the years, we are compelled to ask where these funds have been allocated,” Reid stated. “It is unreasonable for the company to further burden Jamaicans by requesting what amounts to a $150 million loan from consumers, on top of a recent US$50 million drawdown from the OUR.”

    The appeal highlights the nation’s ongoing recovery from Hurricane Melissa, arguing that economic fragility demands compassion, not additional financial pressure. Reid called on international shareholders from Japan and Korea to consider the severe impact on the Jamaican populace.

    Furthermore, the SBAJ cited the exodus of major corporations, including Icool, Colgate, and Palmolive, which have relocated operations to Caribbean neighbors like Trinidad and Barbados due to more competitive energy rates. This trend, Reid warned, threatens to continue if Jamaica’s energy market remains uncompetitive.

    In response to the crisis, the association is advocating for structural reforms. This includes a call for the government to dismantle JPS’s monopoly by inviting alternative power providers to operate in Jamaica. Additionally, the SBAJ is encouraging a national shift towards renewable energy sources, such as solar power, to reduce dependency on the traditional grid and foster long-term economic resilience.

  • NEL recovers from loss with $15.3m profit

    NEL recovers from loss with $15.3m profit

    NATIONAL Enterprises Ltd (NEL) has demonstrated exceptional financial resilience by posting a $15.3 million profit after tax, marking a dramatic 104% recovery from previous unrealized fair value losses. The company’s strategic maneuvers have yielded impressive operational efficiencies, reducing expenses by 9% while simultaneously boosting dividend income by 14% to $129 million from $113 million.

    The energy investment firm reported robust cash reserves of $172 million in cash and equivalents, underscoring its strengthened financial position. This turnaround was significantly propelled by the resurgent performance of NGC and TTLNG—formerly components of Atlantic LNG train one—now integrated into the restructured unified ALNG operation encompassing trains two through four.

    Executive Director David Robinson emphasized the company’s steadfast commitment to shareholder value despite persistent global market volatility, geopolitical tensions, and irregular gas supply patterns. “Our sustained resilience against multifaceted challenges validates both the durability of our core assets and our capacity to capitalize on emerging value-creation opportunities,” Robinson stated. He further expressed confidence that this performance breakthrough establishes a foundation for delivering consistent shareholder returns across both immediate and extended timeframes.

    Beyond financial metrics, NEL reinforced its community engagement through comprehensive corporate social responsibility initiatives targeting education, youth development, social welfare, and cultural programs. The company’s strategic investments included financial literacy campaigns, educational fundraising support, and entrepreneurship incubators, reflecting its dedication to empowering future generations and enriching community ecosystems.

    The 2024 dividend distribution reached $156 million, equivalent to $0.26 per share, with a trailing dividend yield of 7.3%—ranking among the most competitive returns on the local exchange and outperforming comparable market benchmarks.

  • Gopex wijst op zorgen rond export, padieboeren luiden noodsignaal

    Gopex wijst op zorgen rond export, padieboeren luiden noodsignaal

    Suriname’s agricultural sector faces an unprecedented crisis as major industry players report catastrophic declines in export performance and mounting systemic challenges. Gopex International NV, a prominent agricultural enterprise, alongside the Surinamese Rice Farmers Association (SPBA), has issued urgent warnings about the sector’s rapid deterioration.

    Statistical analysis covering 2017 through 2024 reveals an alarming contraction exceeding fifty percent in agricultural output. Madhevie Gopal, representing industry stakeholders, attributes this dramatic decline to multiple factors, primarily stringent European regulatory changes that have rendered Suriname unable to meet Dutch market demands. “We are consistently losing market share to competitors such as the Dominican Republic and Mexico,” Gopal stated, painting a concerning picture for vegetable and fruit exports.

    The crisis extends beyond regulatory challenges to critical infrastructure failures. Gopal highlighted persistent logistical bottlenecks at airport export processing, where agricultural products remain outside refrigeration for five to six hours, severely compromising quality standards. “If we genuinely prioritize food safety,” she emphasized, “we must implement improved facilities coupled with enhanced supervision and monitoring mechanisms.”

    Industry leaders advocate for comprehensive reforms including expanded agricultural research, improved farmer education programs, and effective implementation of the National Institute for Food Safety Suriname Act. This legislation specifically aims to oversee food production, distribution, and export processes to ensure safety and quality standards.

    The rice sector faces parallel challenges. SPBA President Harinandan Oemraw reported that rice farmers confront shrinking profit margins despite increasing investments. “Without structural support,” Oemraw warned, “we anticipate further decline in rice production.”

    Rice farmers grapple with soaring production costs, inadequate research, obsolete seed supply systems, aging infrastructure, limited access to affordable financing, and escalating climate risks. Oemraw identified critical needs including modern irrigation systems, accessible credit facilities, and consistent pricing policies to sustain the sector.

    Proplan Consultancy’s analysis reveals a devastating cost-price imbalance: production costs reach SRD 863 per rice bale while farmers receive merely SRD 400. This economic pressure has resulted in severely reduced planting this season, threatening both national food security and agricultural livelihoods.

    The unified message from Gopex and SPBA underscores the urgent need for targeted policy interventions, improved regulatory oversight, and sector-wide collaboration. Without immediate action, Suriname risks further erosion of international market position and compromised food security. As Gopal succinctly summarized: “No farmer, no food, no future.”

  • Economists cite challenges of the Dominican Republic for 2025

    Economists cite challenges of the Dominican Republic for 2025

    Prominent economists Rafael Espinal and Antonio Ciriaco Cruz have outlined a series of pressing economic challenges confronting the Dominican Republic as the nation approaches 2026. Their analysis identifies critical areas requiring immediate governmental attention to ensure sustainable economic growth and stability.

    Professor Rafael Espinal of Santo Domingo’s Technological Institute (Intec) emphasized that the foremost priority must be the implementation of a comprehensive fiscal reform. He characterized this reform as needing to be progressive in nature, socially inclusive, and strategically structured to benefit the broader economy.

    Espinal identified three additional crucial challenges: revitalizing public investment programs, particularly within the construction sector; maintaining monetary policies that ensure competitively low interest rates; and restoring public trust in governmental institutions through demonstrated administrative honesty and operational efficiency.

    Echoing these concerns, Antonio Ciriaco Cruz, Dean of Economic and Social Sciences at the Autonomous University of Santo Domingo (UASD), specifically called for increasing public investment to approximately 3% of the nation’s Gross Domestic Product. Cruz further recommended stimulating domestic credit mechanisms to boost both private consumption and investment activities—key drivers for achieving targeted economic growth objectives.

    The economics expert additionally cautioned against two emerging fiscal pressures: escalating public debt interest payments and excessive financial transfers to the electricity sector. Cruz warned that without containing these expenditures, the Dominican Republic’s economic progress could face significant headwinds in the coming years.

    Both experts presented their assessments during a recent economic outlook forum, highlighting the interconnected nature of these challenges and the necessity for coordinated policy responses.

  • BM Soat says it obeys all laws, is a “responsible” taxpayer

    BM Soat says it obeys all laws, is a “responsible” taxpayer

    Prominent Guyanese automotive importer BM Soat Auto Sales and Rentals has issued a firm rebuttal against allegations of vehicle undervaluation practices, asserting its full compliance with national laws and its status as a substantial taxpayer. The company’s statement on Saturday December 27, 2025, came in response to media reports citing unnamed Guyana Revenue Authority (GRA) officials regarding alleged malpractices.

    The company expressed concern over what it characterized as unbalanced journalism, noting that recent reports “rely entirely on unnamed sources” and “make broad claims without identifying any individuals.” While not directly addressing whether it has existing court cases with GRA or whether it paid over GY$200 million in due taxes, BM Soat maintained that it “operates within the laws of Guyana and conducts its business with integrity.”

    Highlighting its commercial scale, the company revealed it sold more than 1,500 vehicles in 2025 alone, all processed through “established regulatory channels.” BM Soat emphasized its tax contributions, stating it has paid “billions of dollars in taxes and duties over the years,” which it says reflects its “consistent role as a responsible taxpayer.”

    The controversy emerges against the backdrop of an ongoing investigation into tax evasion practices within Guyana’s vehicle import sector. Seven GRA officials are currently on GY$500,000 bail each and must report to police on December 29 as part of this probe. According to previous reports, the alleged evasion schemes involved either misclassifying vehicles as electric (which bear no taxes) or underreporting engine capacity to qualify for lower tax rates.

    The GRA has indicated plans to expand its investigation to include other vehicle importers, suggesting the current allegations against BM Soat may represent only one aspect of a broader compliance review within Guyana’s automotive import industry.

  • Three former SSL directors slapped with multiple charges

    Three former SSL directors slapped with multiple charges

    KINGSTON, Jamaica — Three former executives of the defunct financial entity Stocks and Securities Limited (SSL) now confront a sweeping array of criminal charges in one of Jamaica’s most significant investment scandals. The accused individuals include SSL founder Hugh Croskery, his daughter Sarah Meany, and former director Zachary Harding, who held his position from 2019 until the firm’s collapse in 2022.

    Prosecutors have filed a comprehensive indictment detailing multiple violations of Jamaican financial regulations. The charges allege the trio systematically deceived investors by fraudulently soliciting investments, constituting a breach of Section 28 of the Larceny Act. Additional counts include operating without proper corporate registration under the Companies Act, conducting securities business without a valid dealer’s license as mandated by the Securities Act, failing to register securities with the appropriate commission, and violating the Banking Services Act.

    The legal proceedings have advanced with Hugh Croskery being granted bail set at one million Jamaican dollars. His court appearance is scheduled for January 26, 2026, where formal proceedings will commence. Croskery’s defense team, led by King’s Counsel Peter Champagnie and attorney Samoi Campbell, has vigorously maintained their client’s innocence.

    Champagnie publicly stated that his client denies all allegations and has provided complete cooperation to investigative authorities throughout the probe. The defense counsel emphasized the importance of due process, urging the public to refrain from premature judgment until judicial proceedings conclude in court.

  • Boutique Hotel Peperpot breidt uit met luxe Citrushuis in Commewijne

    Boutique Hotel Peperpot breidt uit met luxe Citrushuis in Commewijne

    Suriname’s hospitality landscape has welcomed a significant enhancement with the inauguration of Citrus House, a luxurious 20-room extension at Boutique Hotel Peperpot in Meerzorg. The new facility, which commenced operations on Friday, represents a strategic response to growing demand for upscale accommodation options in the Commewijne district.

    This expansion seamlessly integrates modern amenities with the tranquil, green surroundings of the historic Peperpot area, offering guests an immersive experience that balances contemporary comfort with environmental serenity. The development marks a pivotal advancement in Suriname’s tourism infrastructure, targeting both domestic and international travelers seeking premium lodging experiences.

    General Manager Jerry A-Kum emphasized that the project transcends mere capacity increase. “We are not simply adding rooms but creating an entirely new dimension of comfort and experiential travel,” he stated. “This initiative strengthens our service portfolio while making tangible contributions to Suriname’s tourism growth trajectory.”

    The Citrus House development reflects Boutique Hotel Peperpot’s commitment to elevating the nation’s tourism standards through infrastructure enhancement. By preserving the area’s distinctive character while introducing sophisticated accommodations, the establishment positions itself as a catalyst for high-quality tourism development in the region.

    This investment demonstrates the hotel’s dedication to providing memorable, high-caliber experiences that align with Suriname’s evolving tourism ambitions, potentially setting new benchmarks for hospitality excellence in the Caribbean nation.

  • Savings accounts are the most sought-after financial product by foreign migrants in the Dominican Republic.

    Savings accounts are the most sought-after financial product by foreign migrants in the Dominican Republic.

    A comprehensive study conducted by the Superintendency of Banks reveals significant patterns in financial product usage among foreign migrants residing in the Dominican Republic. The research, titled “Towards an Inclusive and Sustainable Financial System 2025,” demonstrates that savings accounts constitute the most widely utilized financial instrument within this demographic, with 83% of surveyed migrants maintaining such accounts.

    Credit and debit cards represent the second most popular financial product, utilized by 54% of the migrant population, while checking accounts follow at 44% penetration. The study emphasizes that migrants form a crucial component of the national workforce and economic framework, yet encounter substantial obstacles in accessing formal financial services.

    Key barriers identified include documentation requirements, institutional trust factors, and limited familiarity with conventional financial instruments. The research methodology incorporated migrant respondents as 7% of its total sample size, with gender distribution nearly equal at 51% male and 49% female participants. Notably, 24% of surveyed migrants reported lacking Dominican identity cards.

    Venezuelan and Haitian nationals predominated among respondent demographics, with 90% residing in urban centers—particularly Greater Santo Domingo (38%) and northern regions (21%). Income analysis revealed 94% of migrants earn below 50,000 pesos monthly, indicating pronounced concentration in lower-income brackets.

    The publication highlights that migrants face particularly stringent verification processes, with 48% reporting additional documentation requirements when applying for financial products. Despite these challenges, 77% of migrants expressed complete confidence in their primary financial institutions.

    While financial institutions have initiated inclusion mechanisms—including simplified banking products, basic accounts, and reduced-cost remittance programs—the study concludes that these initiatives currently maintain limited reach within migrant communities. Researchers stress that understanding financial behaviors and perceptions is fundamental to designing effective policies that foster economic integration and social inclusion within the Dominican financial landscape.