Trinidad and Tobago: Staff Report for the 2021 Article IV Consultation—Informational Annex




Title Page



January21, 2022

Prepared By

The Western Hemisphere Department






Fund Relations

(As of December 31, 2021)

article image

When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

Implementation of HIPC Initiative: Not applicable

Implementation of Multilateral Debt Relief Initiative: Not applicable

Implementation of Catastrophe Containment and Relief (CCR): Not applicable

Exchange Arrangements

Trinidad and Tobago has accepted the obligations of Article VIII, Sections 2, 3, and 4. Trinidad and Tobago’s dejure exchange rate arrangement is floating. Its de facto exchange rate arrangement is stabilized arrangement.

Trinidad and Tobago maintains an exchange restriction and two multiple currency practices subject to the Fund’s approval under Article VIII, Section 2(a) and Section 3. The exchange restriction arises from the authorities’ restriction of the exchange rate (i.e., by restricting the maximum market buy and sell rates, and prohibiting foreign exchange (FX) transactions beyond the maximum rates), while not providing enough FX (i.e., through the CBTT ‘s FX interventions) to meet all demand for current transactions at that rate. The CBTT also limits sales of its FX intervention funds to meeting only “trade-related” demand, which do not include non-trade transactions that are, however, current international transactions as defined under Article XXX(d) of the IMF’s Articles of Agreement and encourages authorized dealers to similarly prioritize sales of FX obtained from other sources. Further, the authorities prioritize provision of FX to certain manufacturers and importers of necessities (foods and medicines) through special FX facilities within the EximBank. These actions result in undue delays in accessing FX to make payments or transfers for current international transactions and external payment arrears.

The two multiple currency practices arise from the absence of a mechanism to prevent the potential deviation of more than two percent at any given time among several effective exchange rates regulated by the authorities, for spot exchange transactions; namely:

  • The potential two percent deviation between: (i) on the one hand, the CBTT’s intervention rate and the authorized dealers’ sell rates (the maximum of which is anchored on the intervention rate plus fixed margins), and (ii) on the other hand, the authorized dealers’ buy rates (the maximum of which is limited at the previous day’s mid-rate).

  • The potential two percent deviation between: (i) on the one hand, the buy and sell rates for FX transactions between the CBTT and the government, and (ii) on the other hand, the authorized dealers’sell rates.

Last Article IV Consultation

The 2018 Article IV Consultation was concluded by the Executive Board, on a lapse-of-time basis, on August 31, 2018, Trinidad and Tobago is on the 12-month consultation cycle (IMF Country Report No. 18/285). A staff visit took place during January 15–21, 2020.

Financial Sector Assessment Program (FSAP) Participation

The 2020 joint IMF-World Bank FSAP missions were held during November 5–19, 2019 and January 21-February4, 2020. The Financial System Stability Assessment (FSSA) was presented to the Executive Board for discussion, on a lapse-of-time basis, on August 31, 2020 (IMF Country Report No. 20/291).

article image
article image

Relations with Development Bank of Latin America (CAF)

(As of December 6, 2021)

Trinidad and Tobago’s Country Strategy covered the period 2016–20 and focuses on four pillars: (i) modernization of the state, (ii) social infrastructure, (iii) transformation of tourism and agriculture, and (iv) education. In particular, the first pillar aims at helping the authorities to reform public enterprises, including the Water and Sewerage Authority (WASA) and enhance digitalization of payments of taxes, the inland revenues and customs, and other aspects of digitalization of services to citizens. The second pillar focuses on improving the country’s infrastructure, including road, air and seaports developments. Under the third pillar, CAF will also provide technical assistance to support the authorities’ efforts to develop a masterplanfor the tourism and agriculture sectors. Finally, increasing the availability of technical and vocational education, improving online education, and enhancing school’s Spanish curriculum are part of the efforts being made within the realm of the education pillar. Under the 2016–20 Strategy, a portfolio of US$1,049 million has been approved, with the latest disbursements amounting to US$301 million in 2020.

Relations with Other Financial Insitutions

Statistical Issues

(As of December 2021)

article image
article image

Table of Common Indicators Required for Surveillance

(As of December 6, 2021)

article image

Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank,and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-a-vis nonresidents. Only from 2011 onwards.

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).