Trinidad and Tobago 2012 - invesTT

Trade and Investment
Approvals and Procedures
Table 5.3: Balance of Payments
Date BOP Total Total
Overall Surplus/ Exports Imports
Deficit (US$Mn) (US$Mn) (US$Mn)
2006 7,700.2 14,217.4 6,517.2
2007 5,721.4 13,391.3 7,669.9
2008 9,064.4 18,686.4 9,622.0
2009 2,202.1 9.175.2 6,973.1
2010* 2,868.8 7,704.4 4,835.6
Source: Central Bank of Trinidad and Tobago
* January -September 2012
The surplus on the current account reflected buoyant energy
exports which underpinned a net merchandise trade position of
$2.3 billion. During the first half of 2011 total merchandise exports
increased by 18.6 per cent compared with January – June 2010.
Energy exports amounted to $5.4 billion, $763.0 million more than
the corresponding period a year earlier, driven in large part by
the strength in crude oil prices. Non-energy exports increased by
$259.2 million to $1,121.4 million, in large measure due to a rise in
exports to CARICOM.
Exchange Rate Stability
The Government of Trinidad and Tobago took a decision to float the
TT dollar with effect in 1993. Removal of official foreign exchange
controls was simultaneously announced. The country’s rate is now
determined by the demand and supply for foreign currency at the
commercial banks. Some degree of influence is exerted, however,
by the Central Bank through its monetary policy on bank reserves
and interest rates, as well as by the commercial banks through their
discretion in the sale of foreign exchange. Such measures make the
system tantamount to a managed float.
Source: Review of the Economy 2011
28
International energy prices rebounded in 2010 and remained fairly
robust into 2011, rising to US$97.30/bbl in July 2011, compared
to US$81.89/bbl in October 2010. The recovery in energy prices,
served to alleviate pressures in the foreign exchange market. In the
period October 2010 and June 2011, purchases from the public
(including energy companies) by authorised foreign exchange
dealers increased by 11.7 percent from US$3,052.6 million to
US$3,411.0 million and sales of foreign currency by authorised
dealers to the general public rose by 10.9 percent to US$4,602.6
million, from US$4,151.9 million when compared to the same period
a year earlier. The Central bank funded the gap between sales and
purchases by selling US$1,390.0 million in foreign currency to
authorised dealers over the period. The weighted average buying
rate for the United States (US) dollar during the period October
2010 to July 2011 increased steadily from TT$6.3242 in October
2010 to peak at TT$6.3227 in July 2011.
During the period from July 2010 to June 2011, the average
buying rate of the United States dollar appreciated from $6.3227
to $6.3845. Within the same period, the selling rate increased from
$6.3759 to $6.4293.
The exchange rate now stands at approximately US$1=TT$6.4385.
Investment in Trinidad and Tobago
The Government of the Republic of Trinidad and Tobago (GORTT)
welcomes foreign direct investment.
While there are various government bodies to facilitate investment
in the country, GORTT encourages the creation of new opportunities
and the incubation of new business without government interference.