Feb 2006 Financial News

Central Bank moves to avert foreign exchange crisis

Feb 03, 2006

THE Central Bank is pumping US$100 million into the banking system to avert a possible foreign exchange crisis, TV6 reported last night.

The report said that US$50 million was injected on Tuesday and another US$50 million will be added on Monday.

However, a source at the Central Bank last night maintained that "there's more than enough foreign exchange for legitimate trade and capital transactions".

"In January 2005, the Bank injected US$29 million, but this January (2006) $110 million was injected, in what is usually a slow month-capital flight (through major projects) is enormous.

"For the entire 2005 the Bank injected US$695 million and there were past years for the month of January, when the Bank didn't have to put in any money at all," the source said.

The TV6 report said that Bankers Association president, Larry Howai indicated that the IMF was asked to take another look at the system to see whether they can recommend any new measures to rectify the situation.

A meeting with the Central Bank and bankers is scheduled for next week.


The Trinidad Express
Friday, 3rd February, 2006
http://www.trinidadexpress.com/index.pl/article_business?id=133266803