T&T's credit card holders utilise US$3 billion annually in foreign exchange.
The whopping figure was revealed yesterday by Finance Minister Colm Imbert in response to questions for oral answers in Parliament.
Responding to a question posed by Naparima Member of Parliament Rodney Charles as to whether an equitable system had been developed to ensure that small businesses are not significantly disadvantaged by foreign exchange shortages, Imbert said T&T liberalised its exchange rate regime in 1983, thereby removing control on foreign exchange transactions.
Since control was removed 25 years ago, Imbert said the Central Bank intervened in the commercial banking sector from time-to- time to supplement the amount of foreign exchange available to the public from commercial banks.
“Over the last three years a total of almost US$6 billion has been sold to the commercial banks from the Government’s foreign reserves at the Central Bank.”
The foreign exchange is provided to the banks monthly or forth nightly, depending on supply and demand, Imbert said.
“It is usually supplied in increments of US$50 million to US$100 million at a time.”
He said every dollar of foreign exchange provided by the Central Bank to commercial banks reduces Government’s foreign reserves by an equivalent amount.
In a supplemental question, San Juan/ Barataria MP Dr Fuad Khan asked what quantum of money is used for credit card payments.
In response to that question Imbert said, “I can say that the last time we checked, the credit cards utilise US$3 billion a year of the country’s total foreign exchange.”
Imbert said the importation of motor cars make up the largest consumers of foreign exchange.
