PORT OF SPAIN, Trinidad--Central Bank Governor Jwala Rambarran is facing attacks from the government and the private sector for revelations he made last week, including that the twin-island republic is officially in a recession.
Finance Colm Imbert has criticised him as “discourteous” for making the announcement before communicating the situation to Government first, noting that the Central Bank Act, Section 49, states that “The Bank shall keep the Minister informed of the monetary and banking policy pursued or intended to be pursued by the Bank.”
Meanwhile, the Trinidad and Tobago (T&T) Chamber of Industry and Commerce has said Rambarran betrayed business’ confidence by giving names and details of those using the most foreign exchange.
It was while addressing the Fifth Monetary Policy Forum last week Friday that Rambarran said the twin-island nation was in a recession, stuck in a low growth cycle, and vulnerable to further declines in energy prices and production. The Central Bank Governor also disclosed the names of businesses deemed to be the top users of foreign exchange in the country and the amounts of foreign exchange purchased by each company.
“It was unfortunate that the breach occurred in a speech which otherwise presented valuable information on economic and monetary trends to the public. In attempting to add context and a better understanding of the foreign exchange usage profile, it would have been sufficient for the Governor to have listed only the sectors and industries which are the main users of foreign exchange,” the Chamber said in a statement.
“Not surprisingly, as customers and depositors of commercial banks, companies are severely aggrieved at the betrayal of confidence, given the high expectation of privacy in such matters. The T&T Chamber is also concerned that this is a dangerous precedent that could lead to further disclosure of any confidential information, if this action goes unchecked.”
The Chamber further argued that it was unacceptable that its membership should be “unfairly targeted” as they engage in legitimate commercial pursuits in order to meet customer demand.
“By publicly disclosing the large users of foreign exchange, the Governor appears to be holding the Central Bank and himself blameless for high foreign exchange usage. It must be noted that it is the Central Bank, through the Governor, which is responsible for the country’s monetary policy which has promoted the environment articulated by the Governor,” the statement added.
The Chamber said it has been actively lobbying authorities to find solutions to resolve the short supply of foreign exchange and a viable one could not be accomplished through either “inadvertent or wilful betrayal of the duties of confidentiality outlined in Section 56 of the Central Bank Act or any other relevant Act which regulates the relationship between the Central Bank and licensed banks.”
Despite its displeasure with Rambarran, the Chamber said it remained committed to continued collaboration with the Governor. ~ Caribbean360 ~
