geisha.kowlessar@guardian.co.tt
Republic Financial Holdings Limited (RFHL) president and CEO Nigel Baptiste says US currency is the “biggest constraint” to the development of T&T.
Speaking at the signing of a partnership between the bank and the Caribbean Export Development Agency (CEDA) Baptiste said the country first has to produce US to consume it.
“Historically there remains a dependence on the Government through the Central Bank to supply foreign exchange to the local market. A few years ago Republic Bank recognised that we need to help our clients become a little bit more self sufficient.
“That in turn, would help the bank because it would reduce the demand for foreign exchange from those clients who are able to generate it for themselves,” Baptiste explained on the reason for the venture.
More importantly, he added, this would enable the bank to then supply Forex to those involved in the import business who may have difficulty obtaining foreign exchange.
“So to the extent where we can get our exporters growing, generating foreign exchange and one of the conditions for our work is that they have to bring back a certain percentage of their exports receipts,” Baptiste said.
Also, he noted the initiative would increase the export potential and capacity of the region’s SMEs and larger firms through targeted support and training.
According to Baptiste a partnership like this is needed more than ever as the “inherently vulnerable” Caribbean economies remain on the path to recovery after the crippling impact of COVID-19 and as they aim to stay the course to sustainable development and long-term economic growth in a post-pandemic world.
Further, Republic Financial Holdings Limited’s (RFHL) president and CEO noted that capacity and training will lead to the elimination of technical barriers to trade that may have impeded the export readiness of some SMEs.
“The partnership can lead to a much needed diversification of our trade offerings as a country especially if focus is placed on areas where we can have a competitive advantage,” Baptiste added.
Dr Damie Sammy, CEDA’s Manager, Competitiveness and Export Promotion who also spoke argued that too many economies are focused on a narrow range of products and services which is not ideal.
He said CEDA, which recently completed its strategic plan, is focused on three main pillars one of which is export development and promotion including the digitalisation of business.
“If this pandemic has taught us anything is that we cannot utilise traditional brick and mortar business. We have to look at being more innovative,” Sammy advised.
He said the plan also entails targeting foreign direct investment in the Caribbean as well emphasis on services.