As the upcoming general election draws near, financial economist Dr. Vaalmiki Arjoon emphasizes the critical importance of prioritizing forex earnings for the new government, regardless of the election outcome. With approximately 40% of Trinidad and Tobago’s imports originating from the United States, recent tariffs imposed by President Donald Trump could significantly impact the country’s economy.
Here are some key points highlighted by Dr. Arjoon:
- The tariffs instituted by President Trump are already causing price increases in the US, leading to potential price hikes from US suppliers for Trinidad and Tobago.
- Higher currency prices will necessitate the use of more forex to pay for imports from the US, particularly affecting agriculture-based imports such as fertilizers.
- Restrictive availability of US dollars from banks may drive increased black market purchases to source the required forex, potentially raising black market rates.
- This situation poses a significant risk to the country’s economic well-being, with potential inflationary pressures and a decline in investor confidence.
Dr. Arjoon stresses the urgent need for non-energy sectors to expand their export market share to strengthen reserves and enhance resilience against global economic uncertainties. He asserts that the new government must take decisive action to address these challenges head-on to secure the country’s economic future.
In conclusion, the impending election presents an opportunity for the government to prioritize forex earnings, diversify the export market, and safeguard the economy against international economic fluctuations. It is imperative that strategic actions are taken to mitigate the potential risks posed by external factors such as tariffs and currency fluctuations.
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