A LOCAL businessman has written to the International Monetary Fund (IMF) asking the body to intervene in Trinidad and Tobago’s foreign exchange 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 to raise the alarm over the non-existence of foreign exchange policy records.

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 foreign exchange distribution.

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

He said there was an “extreme shortage” of foreign currency and he sought information on the distribution policy through his lawyer, Richard Jaggessar, from the Ministry of Finance via the Freedom Act information (FOIA), but was told “no information”. in the matter exists.”

“The absence of these fundamental documents suggests that the Central Bank cannot effectively manage the distribution of foreign exchange or ensure compliance with international standards, raising concerns about accountability and corporate responsibility,” he said. he declared.

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 constitute a violation of IMF reporting requirements.

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

Unfair distribution

Ramsaran said there appears to be an unfair distribution of what little foreign exchange is available, without equality or fairness between the business community and, by extension, the citizens of Trinidad and Tobago.

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

He noted that the Ministry of Finance’s response of July 29, 2024 clarified that each of the requested documents (seven requests) could not be provided because they did not exist.

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

“Lack of corporate responsibility

“If the ministry’s claims are true, this situation reveals fundamental failures in the fundamental principles of good governance, which undermine not only domestic regulatory requirements but also the country’s international obligations, particularly those established by the IMF,” a- he declared.

Furthermore, if the Ministry of Finance is unable to provide such critical documents, 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. Such a situation exposes the country to significant financial risk and undermines investor confidence,” he said.

He further said that the absence of the requested documents also suggests non-compliance with IMF governance and reporting standards.

Ramsaran said Trinidad and Tobago’s failure to maintain or produce records relating to foreign exchange policies and audits raises questions about whether the country is meeting these international standards.

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

Ramsaran said that in order to comply with IMF international standards, the Trinidad and Tobago government has implemented legislation including the Exchange Control Act.

This Act, he noted, governs the management, regulation and supervision of foreign exchange in Trinidad and Tobago, and under this legislation, the Central Bank is responsible for licensing and regulating foreign exchange dealers licensed, including commercial banks and non-bank financial institutions. .

He said the Central Bank has granted licenses to a number of exchange offices.

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

He said the Exchequer and Audit Act unequivocally grants the Auditor General the power 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.

Ramsaran highlighted Ramdass’s battles with the government over the national accounts, saying: “I must admit that your position on public policy and good corporate governance has solidified my position on this issue. Given your recent legal battles with the Department of Finance over the underreporting of billions in income, it is evident that systemic problems persist in the department’s recordkeeping and transparency practices.

“Your strong stance against inappropriate practices within the department and your commitment to protecting the integrity of the Office of the Auditor General are well known. These factors suggest that this situation warrants your immediate investigation, as it undermines both local governance frameworks, such as the Exchequer and Audit Act, and international obligations,” he added.

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

Ramsaran told Ramdass that he had requested the intervention of the IMF and called on his office to take steps to ensure that the Ministry of Finance fulfills its legal and constitutional obligations.

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 to have no information on a foreign exchange policy.

He said that in the past it was this data that informed policy.

He added that in May 2014, the Central Bank released US$200 million to licensed brokers in the financial system to ease the current tensions in the domestic foreign exchange market.

And in May 2014, he said the Central Bank had released an additional $50 million to foreign exchange traders in anticipation of a seasonal currency decline.

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

He called on the Central Bank to disclose the information.