PORT OF SPAIN, Trinidad, CMC – TheCentral Financial institution of Trinidad and Tobago (CBTT) says the choice to droop the alternate of Trinidad and Tobago greenback banknotes by the Financial institution of Jamaica was taken to scale back prices and to stop the potential for felony actions, together with cash laundering.
The CBTT, in response to questions from the Trinidad Guardian newspaper on the difficulty, stated that its counterpart establishments within the Caribbean area have a long-standing association to redeem one another’s foreign money.
“This implies, for instance, that the CBTT will periodically ship to the Financial institution of Jamaica (BOJ, which is Jamaica’s Central Financial institution) the Jamaican {dollars} (J$) the CBTT might have collected over time. The BOJ will credit score the CBTT’s account with the equal in US$. This association is reciprocal and has labored effectively,” the CBTT stated.
“The quantities collected are typically small, associated to quantities that Governments might have collected from people and firms in courtroom instances, embassies, some taxes, and so on. For probably the most half, the central banks might make minimal over-the-counter exchanges from the general public,” stated the CBTT.
It stated that these and different foreign money preparations have been continuously being reviewed and mentioned among the many employees of the banking departments of the varied central banks.
“That is, amongst different issues, to maintain up with new technological developments and streamline operations, together with lowering the prices related to repatriating banknotes and staving off potential avenues for cash laundering and different felony actions.
“On this specific case, the BOJ and CBTT employees thought-about that it could be acceptable to have the BOJ droop its over-the-counter public exchanges of TT$. That is in keeping with the present CBTT apply of not participating in such exchanges with the general public, both for J$ or every other foreign money,” the CBTT added.
Earlier this week, Finance Minister Colm Imbert acknowledged that the choice by the BOJ to quickly droop the alternate of native foreign money at its banking counter was “to overview its preparations” with the CBTT.
In an announcement posted on X, previously Twitter, Imbert stated that the quantity traded in Trinidad and Tobago {dollars} in Jamaica “equals solely US$4,000 per thirty days”.
In his assertion, Imbert took difficulty with a neighborhood newspaper, which he stated printed an article Wednesday “describing that small sum as proof of a foreign money disaster.”
“How irresponsible,” the Finance Minister stated, including in a later X message, “all this drama over such a small quantity of foreign exchange (overseas alternate), making a mountain out of a molehill, creating anxiousness for no motive.”
The BOJ had stated that as of November 6, the alternate of Trinidad and Tobago {dollars} at its banking counter is suspended till additional suggested. The BOJ, additionally the nation’s central financial institution, gave no particular motive for the overview and that this non permanent suspension will stay in impact till additional discover.
But it surely stated that the suspension is as a result of the Central Financial institution of Trinidad and Tobago, to which this foreign money is repatriated, has suspended the preparations for repatriating T&T {dollars} till additional suggested.
“Financial institution of Jamaica will advise of additional developments,” the assertion added.
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