SOME business groups are calling for clear guidelines regarding possible solutions to the distribution of foreign exchange (forex).

At a post-Cabinet news conference at Whitehall on March 27, Prime Minister Stuart Young committed to continuing conversations with the Central Bank, the Bankers Association (BATT) and commercial banks on the issue of forex and its local allocation.

Representatives of these groups met with Young and Finance Minister Vishnu Dhanpaul at Whitehall on March 25. Young described the talks as productive.

He asked the Central Bank, Bankers Association and commercial banks to continue their conversation with Dhanpaul. and the Finance Ministry.

“I told them we would be meeting again two Wednesday now (April 9) because the government intends to address this situation.”

Young said he asked the Central Bank and Finance Ministry to explore possible solutions to this issue.

In a WhatsApp comment on March 28. Greater Chaguanas Chamber of Commerce President Baldath Maharaj said the chamber wanted "a clear and structured guideline outlining which businesses qualify for forex allocations and the criteria used for distribution."

He added, "There must be full transparency in the allocation process to ensure fairness and accessibility for all sectors, particularly those most dependent on forex for sustainability and growth."

[caption id="attachment_1131432" align="alignnone" width="622"] Greater Chaguanas Chamber of Commerce president Baldath Maharaj. -[/caption]

The chamber, Maharaj continued, acknowledged TT does not have an an unlimited supply of forex and the complexities involved in managing its distribution.

"However, businesses continue to struggle with limited access, which directly impacts operations, imports, and overall economic activity."

Maharaj said, "We cannot continue to allow banks to apply arbitrary criteria that effectively monetise the sums provided to them, increasing their profitability at the expense of businesses." He accepted financial institutions have a role to play.

But Maharaj added, "There must also be a level of social responsibility in how forex is distributed to ensure that businesses, particularly small and medium enterprises (SMEs), are not unfairly sidelined."

This is not simply a matter of rationing forex. He said, "The government must clearly outline what steps are being taken to increase US dollar inflows to meet the growing demand."

A long term, sustainable solution, Maharaj continued, is necessary to ensure businesses can operate efficiently and remain competitive.

"We cannot allow Trinidad and Tobago to become the laughing stock of the Caribbean due to our persistent forex challenges while other nations in the region successfully manage their reserves and inflows."

Maharaj said the private sector is prepared and willing to collaborate with government and the financial institutions but there must be a clear commitment to implementation

"The business sector needs stability, predictability, and fair access to foreign exchange to drive