A LOCAL businessman has written to the International Monetary Fund (IMF) calling on the body to intervene in Trinidad and Tobago’s foreign exchange (forex) crisis and hold the Government to account for its lack of transparency which is seriously affecting businesses.

Rajnanan Ramsaran, owner and founder of Ramsaran Dairy Products, sent a ten-page letter dated October 18, 2024 to the executive director of the IMF alerting about the lack of policy records regarding the foreign exchange market.

In subsequent letters, Ramsaran also wrote to Auditor General Jaiwantie Ramdass requesting urgent action, and to Central Bank Governor Dr. Alvin Hilaire requesting information on the distribution of foreign exchange.

“This letter seeks to draw attention to the glaring problems of transparency and governance failures that hinder economic growth and violate international standards, problems that directly affect not only business owners like me, but the economic stability of the entire nation,” Ramsaran’s letter to the IMF said.

He said there is an “extreme shortage” of foreign currency and tried to obtain information about the distribution policy through his lawyer, Richard Jaggessar, from the Ministry of Finance through the Freedom of Information Act (FOIA), but was told that “There was no information.” on the matter exists.”

“The absence of these critical documents suggests that the Central Bank is unable to effectively manage currency distribution or ensure compliance with international standards, raising concerns about accountability and corporate responsibility,” he said.

Ramsaran noted that Trinidad and Tobago is a member of the IMF and the ministry’s response indicated a failure to meet these obligations, which could violate IMF reporting requirements.

“In the face of this alarming situation, we urgently call on the IMF to intervene and ensure that Trinidad and Tobago meets its commitments under IMF regulations,” he stated.

Unfair distribution

Ramsaran said there appears to be an unfair distribution of the few currencies available, with no equality or equity among the business community and, by extension, the citizens of Trinidad and Tobago.

He said the FOIA request sought to obtain information and asked for several items, including any documents detailing the total amount of foreign exchange allocated by the Central Bank to commercial banks for distribution in local markets for the period 2015-2023.

He noted that in the Ministry of Finance’s response of July 29, 2024, it was indicated that each of the requested documents (seven requests) could not be delivered because they do not exist.

Ramsaran stated that the ministry’s assertion that the requested documents do not exist raises serious concerns about the governance framework and corporate responsibility within Trinidad and Tobago’s public financial institutions.

‘Lack of corporate responsibility

“If the ministry’s assertion is true, this situation reveals fundamental flaws in the basic principles of good governance, which undermine not only domestic regulatory requirements but also the country’s international obligations, particularly those established by the IMF,” he said.

Furthermore, if the Finance Ministry is unable to provide such critical records, it clearly indicates a lack of corporate responsibility, Ramsaran said.

“This could suggest that foreign exchange management in Trinidad and Tobago operates in an ad hoc or arbitrary manner, without clear guidelines, procedures or checks and balances. “This situation exposes the country to significant financial risks and undermines investor confidence,” he stated.

He further stated that the absence of the requested documents also suggests a failure to comply with the IMF’s governance and reporting standards.

Ramsaran said the fact that Trinidad and Tobago does not maintain or produce records related to foreign exchange policies and audits raises questions about whether the country is complying with these international standards.

“This could have serious consequences, not only damaging Trinidad and Tobago’s reputation on the world stage, but also potentially affecting its eligibility for future financial support or policy advice from the IMF,” he said while asking the IMF to confirm whether Trinidad and Tobago has been in full compliance with its obligations under its regulatory framework.

Ramsaran stated that to comply with the IMF’s international standards, the government of Trinidad and Tobago implemented legislation, including the Exchange Control Act.

This law, he noted, governs the management, regulation and supervision of foreign exchange in Trinidad and Tobago, and under this legislation, the Central Bank is mandated to license and regulate authorized foreign exchange agents, including commercial banks. and non-banking financial institutions. .

He said that the Central Bank has granted licenses to several exchange houses.

Ramsaran emphasized that there is a “non-negotiable legal expectation” that accurate records must exist.

He said the Finance and Audit Act unequivocally grants the Auditor General the authority to access all financial records, including those relating to state-controlled resources such as foreign exchange.

Letters to the Auditor General and the Central Bank

After writing to the IMF, Ramsaran also wrote to the Auditor General on October 20, 2024.

Highlighting Ramdass’s battles with the Government over the national accounts, Ramsaran said: “I must admit that his stance on public policy and good corporate governance solidified my stance on this matter. Given its recent legal battles with the Ministry of Finance regarding the failure to report billions in revenue, it is clear that systemic problems remain within the ministry’s transparency and record-keeping practices.”

“His strong stance against improper practices within the ministry and his commitment to protecting the integrity of the Comptroller General’s Office are well known. “These factors suggest that this situation warrants immediate investigation as it undermines both local governance frameworks, such as the Finance and Audit Law, and international obligations,” he added.

He reiterated the need for the documents to show the exchange rate policy in Trinidad and Tobago.

Ramsaran told Ramdass that he had asked the IMF to intervene and asked his office to take steps to ensure that the Finance Ministry fulfills its legal and constitutional duties.

Letter to the Central Bank

In his letter to Central Bank Governor Alvin Hilaire dated October 25, 2024, Ramsaran expressed his “shock” that the Ministry of Finance claimed that it had no information on a foreign exchange policy.

He stated that in the past it was this data that informed policies.

He added that in May 2014, the Central Bank released 200 million dollars to authorized intermediaries of the financial system to alleviate the current tightness experienced by the internal exchange market.

And in May 2014, he said the Central Bank gave another $50 million to foreign exchange agents in anticipation of a seasonal decline in currencies.

“The fact that this was done in anticipation of a seasonal decline means that the Central Bank monitors the exchange rate and maintains historical data,” he said.

He asked the Central Bank to release the information.