FINANCE Minister Colm Imbert has rejected claims published in certain sections of the media that government has received a caution from the International Monetary Fund (IMF) with respect to the distribution of foreign exchange (forex).
In a statement issued by the ministry on November 10, Imbert noted commentary in the public domain about difficulties being experienced by companies and individuals to access forex; government allowing the TT dollar to float (devalue) because the IMF says so; to address the perception of an unfair distribution of forex, should get directly involved in the distribution of forex and not leave it up to the commercial banks or the Central Bank; and government gave into pressure from businessmen and a daily newspaper to resume a forex window at the EximBank for essential imports.
He said, "The reality is that the IMF’s recommendation that the government should allow the TT dollar to float, which would result in an immediate devaluation of the TT dollar, is not new."
Imbert added the recommendation did not appear for the first time in the 2024 IMF Article IV report, as alleged in a daily newspaper report on November 10.
As far back as 2012, he continued, the IMF recommended “greater exchange rate flexibility to allow pricing to play a bigger role in equilibrating the market.”
Imbert said it was repeated in the IMF’s 2013 Article IV Report where it reiterated its view that “our exchange rate should be allowed to fluctuate within a wider band."
He added the then UNC-led People's Partnership (PP) coalition government "told the IMF that they were not contemplating changes to the exchange rate system at that time."
Again in 2014, Imbert continued, the IMF told the PP that the forex allocation system existing at that time “had led to an apparently widespread and persistent recurrence of forex shortages.”
He said the PP maintained its objection to the IMFs recommendation that the dollar be allowed to float.
The PNM, Imbert continued, has consistently stated since 2015 that it maintains "our fixed exchange rate to control inflation, which is now almost the lowest in the world."
He said the PNM has also maintained that it would not impose hardship on the poor and vulnerable by giving into the irrational demands from certain people and entities that it devalue the dollar.
"All a devaluation will do is cause a massive spike in the cost of living and make everything more expensive. It will not create any additional US dollars for the country or make forex more readily available for ordinary citizens."
He said a daily newspaper was doing TT a disservice "by pretending that we are subject to the dictates of the IMF, therefore, and constantly pushing its devaluation agenda for the last nine years."
"In this context, it is noteworthy that Barbados, which has been in an IMF programme for many years, and at one time within the last ten years almost ran out of foreign reserves, has resolutely refused for the last 49 years to float or devalue its dollar."
Imbert repeated his comm
