Low energy prices, combined with decreases in oil and gas production in Trinidad and Tobago, are constraining the availability of foreign exchange. Economist Anselm Richards clarifies that this situation has been deteriorating over the years, with the public requiring more foreign exchange (FOREX) annually.
Richards believes that the foreign exchange shortages can only be addressed by reducing the country’s dependence on the energy sector. According to Richards, Tobago has the ability to bring in significant amounts of FOREX through tourism.
However, the development of a robust tourism product necessitates both investment and clear policy direction. Despite the country’s commitment to adhering to the UN Sustainable Development Goals of reducing reliance on fossil fuels by 2030, the government has not yet established specific timelines and targets for achieving this goal. Richards does not anticipate that any significant diversification plans will be announced in the upcoming budget on October 2nd. He notes that foreign exchange shortages are fueling the growth of a black market for it.
