Sep 2005 Financial News

Growth in local banks’ foreign exchange purchases

Sep 01, 2005

During 2004, commercial bank purchases of foreign exchange from the public grew by 17.9 percent to US$2,441.3 million from US$2,070.4 million in 2003, the Central bank’s annual report said.

"The growth in purchases reflected a higher level of inflows from companies in the energy sector," it was noted.

There was also an increase in sales of foreign exchange by 13.7 to US$2,984.2 million from US$2,625.1 million in the previous year.

Activity in the domestic capital market by regional issuers remained relatively strong, accounting for US$280 million compared with US$428 million in the previous year.

The Central Bank sold a total of US$400 million to the market in 2004, compared with US$505 million in the previous year. The US dollar traded in a relatively narrow range.

The selling rate averaged TT$6.2990 compared to TT$6.2951 in 2003. There was greater fluctuation in the buying rate which averaged TT$6.2441 in the review period compared to TT$6.2312 in the previous year.

Notwithstanding sales to the market, the net official foreign reserves held by the Central Bank rose to US$2.976 billion, up from US$2.242 billion at the close of 2003, equivalent to 6.9 months of prospective imports of goods and services.

Trinidad & Tobago's Newsday
http://www.newsday.co.tt/business.php