Local manufacturers are maintaining the warning that Trinidad and Tobago’s ongoing foreign exchange shortage is placing serious pressure on businesses, affecting their ability to import raw materials and maintain production. The Trinidad and Tobago Manufacturers’ Association says the issue remains one of the sector’s biggest challenges.
Newly appointed TTMA President Emile Ramkissoon says many manufacturers are now forced to carefully balance limited foreign exchange allocations while still trying to keep operations running. He explains that accessing US currency through the banking system remains difficult, leaving companies heavily dependent on the Exim Bank for support.
“Running a company back in the days was easier because we didn’t have a foreign exchange crisis. Now we’re in a foreign exchange crisis. We have to pivot forward and retool. And as second and third generation, you have to learn how to balance cash flow, balance paying suppliers, how to use your money to pay raw materials, how to use the foreign exchange that you get from the Exim Bank.”
Mr. Ramkissoon says while the Exim Bank provides some relief, the system still creates uncertainty for businesses when allocations are delayed or inconsistent.
“And the function and the policy of Exim Bank really and truly is to help companies get to that manufacturing stage and get back foreign exchange back into the country. And that is what the Ministry of Finance is really looking at, to restructure Exim Bank. And I will agree on that, you know, get it back to that system. But currently, the gaps in Exim Bank, because sometimes you get an allocation this month and then you have a two-month gap. And, you know, it really puts a strain on our members.”
The TTMA says improving access to foreign exchange and expanding export markets will be critical to strengthening the manufacturing sector and helping businesses generate more foreign currency for the economy.