Foreign Currency Usage Limits on Credit Cards

[paid_influencer]

So how does a local bank get forex?

some bank in central i think

but you asking the wrong question - How does a local bank get local currency? Where did the local currency come from in the first place?

does the issuer of that local currency have any responsibilities to the bearers of the note? is the note backed by assets? what are those assets, where did they come from, and who owns those assets?

is there a system of laws set up so the said issuer (or their authorised agents) is the only entity where foreign currency can be exchanged for local currency, and vice versa?

But more importantly-

If I want to buy a saree for my wife, do I have to go to india with some benne balls and a steelpan and hope they accept the trade?

[Duane 3NE 2NR]

So how does a local bank get forex?

Local banks in Trinidad and Tobago, as "authorized dealers," obtain foreign exchange (forex) from the Central Bank of Trinidad and Tobago, which manages the country's foreign reserves and regulates forex transactions.

[pugboy]

yuh could go indian expo
but then how the indian vendor converting the ttd to forex for him to send back home ?

So how does a local bank get forex?

some bank in central i think

but you asking the wrong question - How does a local bank get local currency? Where did the local currency come from in the first place?

does the issuer of that local currency have any responsibilities to the bearers of the note? is the note backed by assets? what are those assets, where did they come from, and who owns those assets?

is there a system of laws set up so the said issuer (or their authorised agents) is the only entity where foreign currency can be exchanged for local currency, and vice versa?

But more importantly-

If I want to buy a saree for my wife, do I have to go to india with some benne balls and a steelpan and hope they accept the trade?

[Duane 3NE 2NR]

Let me put another way for some trinis who just not understanding.

Let us say your child is going to school in the USA. Their school tuition each year is 50k usd. Which one of their parents ever earned and paid taxes of income of 50k usd when they have worked all their lives in Trinidad and earned ttd?

The economic rent from the extraction of natural resources in Trinidad and Tobago belongs to the people of Trinidad and Tobago. The Trini working for TT$ does not mean he is never eligible for US$ that the energy sector bought in.

I tried many different ways to explain this to him - hopefully this one sticks

[Redress10]

So how does a local bank get forex?

some bank in central i think

but you asking the wrong question - How does a local bank get local currency? Where did the local currency come from in the first place?

does the issuer of that local currency have any responsibilities to the bearers of the note? is the note backed by assets? what are those assets, where did they come from, and who owns those assets?

is there a system of laws set up so the said issuer (or their authorised agents) is the only entity where foreign currency can be exchanged for local currency, and vice versa?

But more importantly-

If I want to buy a saree for my wife, do I have to go to india with some benne balls and a steelpan and hope they accept the trade?

So the local bank itself does nothing to generate forex? It's not making overseas investments neither is it lending usd to US companies or international companies that pay back those loans in USD? So if the central bank doesn't have any forex to give a bank then that bank simply can't conduct any forex transactions for its customers?

[Redress10]

yuh could go indian expo
but then how the indian vendor converting the ttd to forex for him to send back home ?

So how does a local bank get forex?

some bank in central i think

but you asking the wrong question - How does a local bank get local currency? Where did the local currency come from in the first place?

does the issuer of that local currency have any responsibilities to the bearers of the note? is the note backed by assets? what are those assets, where did they come from, and who owns those assets?

is there a system of laws set up so the said issuer (or their authorised agents) is the only entity where foreign currency can be exchanged for local currency, and vice versa?

But more importantly-

If I want to buy a saree for my wife, do I have to go to india with some benne balls and a steelpan and hope they accept the trade?

Ofcourse he is converting local currency to usd to send home to his family. This further creates forex leakages.

[Redress10]

Let me put another way for some trinis who just not understanding.

Let us say your child is going to school in the USA. Their school tuition each year is 50k usd. Which one of their parents ever earned and paid taxes of income of 50k usd when they have worked all their lives in Trinidad and earned ttd?

The economic rent from the extraction of natural resources in Trinidad and Tobago belongs to the people of Trinidad and Tobago. The Trini working for TT$ does not mean he is never eligible for US$ that the energy sector bought in.

I tried many different ways to explain this to him - hopefully this one sticks

This is not an actual point. There is nothing in the constitution that says that the government needs to make available to the population X amount of usd so that they can use at their own whims and fancy. If you are a legitimate business then there are government services etc that help facilitate your access to USD. We have this myth that we are entitled to USD as odinary citizens.

The economic rents are the subsidies, infrastructure, education etc that you benefit from. Not the government making X amount of USD available to the general population for travel and online shopping.

[Duane 3NE 2NR]

^ it's one of the roles of the Central Bank

Central Bank's Role:
The Central Bank of Trinidad and Tobago manages foreign exchange and has been combatting forex shortages since 2015 through regular injections of U.S. currency from the country's foreign reserves.

How Banks Obtain Forex:
From the Central Bank: Banks can obtain forex from the Central Bank, which is the primary source of foreign currency in the country.
From Other Authorized Dealers: Banks can also obtain forex from other authorized dealers, who are licensed to conduct foreign exchange transactions.
From Customers: Banks also obtain forex from their customers who are selling foreign currency.

[Dave]

From A level economics, Central bank is simply put as the commercial bank's bank.

[paid_influencer]

So the local bank itself does nothing to generate forex? It's not making overseas investments neither is it lending usd to US companies or international companies that pay back those loans in USD? So if the central bank doesn't have any forex to give a bank then that bank simply can't conduct any forex transactions for its customers?

those fully overseas transactions never touch touch local currency tho, so are irrelevant here.

The central bank is the only source where foreign currency can be exchanged for local currency or vice versa.

I cannot legally buy pounds from you nor can you buy local currency from me.

ALL have to go through central bank (or its agents). It is literally written in the law. The central bank must be a middle-man in any currency exchange.

[Redress10]

^ it's one of the roles of the Central Bank

Central Bank's Role:
The Central Bank of Trinidad and Tobago manages foreign exchange and has been combatting forex shortages since 2015 through regular injections of U.S. currency from the country's foreign reserves.

How Banks Obtain Forex:
From the Central Bank: Banks can obtain forex from the Central Bank, which is the primary source of foreign currency in the country.
From Other Authorized Dealers: Banks can also obtain forex from other authorized dealers, who are licensed to conduct foreign exchange transactions.
From Customers: Banks also obtain forex from their customers who are selling foreign currency.

And this is the point I was making with customers earning their own USD etc and depositing it with the bank. The reason why I was saying this is because once the customer ia purchasing or relying on its bank for forex then that is an issue that is based on the relationship that exists between the bank and the customer.

If the bank gets 100 million usd a day and all sell out by 12 pm then how can customers who come to the bank after 12 blame the government? The forex issue is simply one of demand and supply where demand is more than supply. The solution could never be the government pumping more and more forex to meet this demand for consumption.

[Redress10]

So the local bank itself does nothing to generate forex? It's not making overseas investments neither is it lending usd to US companies or international companies that pay back those loans in USD? So if the central bank doesn't have any forex to give a bank then that bank simply can't conduct any forex transactions for its customers?

those fully overseas transactions never touch touch local currency tho, so are irrelevant here.

The central bank is the only source where foreign currency can be exchanged for local currency or vice versa.

I cannot legally buy pounds from you nor can you buy local currency from me.

ALL have to go through central bank (or its agents). It is literally written in the law. The central bank must be a middle-man in any currency exchange.

But if they take forex and invest it overseas etc then they could use the profits etc and sell it to their customers. So it's relevant. Is it that they can't do that? They then have a way to create and generate their own forex. What about foreign entities who want to invest in local stocks and bonds etc. Wouldn't they be paying in forex as well. If banks are claiming to run out of forex daily, is that good banking practices?

[paid_influencer]

No they cannot. Any currency exchange MUST go through the central bank.

[Redress10]

But if they take forex and invest it overseas etc then they could use the profits etc and sell it to their customers.

No they cannot. Any currency exchange MUST go through the central bank.

So waiiiiit. So after the banks buy the forex from Central Bank, they can't take that money and do wity it how they see fit? They can't spend it all on Apple shares?

[paid_influencer]

^ they can (and do) sell their own subsidiary companies forex.

but buying apple shares etc, is after the currency conversion.

if those subsidiary companies wanted to convert usd to ttd, they have to go through the central bank or its authorised agent. they can't sell that usd to somebody directly.

so what you are saying about going around the central bank if they "have none to sell" cannot legally be done

[pugboy]

it’s not the banks money, it’s the allotment for use of customers

[Redress10]

it’s not the banks money, it’s the allotment for use of customers

So they bank don't pay for the forex? Or are they just facilitating a sale for Central Bank?

[pugboy]

the bank pays for it via customers paying for it
so it has to be accounted for at the end of the day
but it is not the banks own it directly,
the bank can decide which customers they sell to which is where the ambiguity lies

unlike in america when they debt climbs up the govt just prints more money and adds it to the system to give ppl more monopoly money to play with

it’s not the banks money, it’s the allotment for use of customers

So they bank don't pay for the forex? Or are they just facilitating a sale for Central Bank?

[Redress10]

the bank pays for it via customers paying for it
so it has to be accounted for at the end of the day
but it is not the banks own it directly,
the bank can decide which customers they sell to which is where the ambiguity lies

unlike in america when they debt climbs up the govt just prints more money and adds it to the system to give ppl more monopoly money to play with

it’s not the banks money, it’s the allotment for use of customers

So they bank don't pay for the forex? Or are they just facilitating a sale for Central Bank?

W
T
F

I thought Central bank just used to sell it to them and then the bank sell it to its customers and make profit based on the exchange rate.

[Duane 3NE 2NR]

the bank pays for it via customers paying for it
so it has to be accounted for at the end of the day
but it is not the banks own it directly,
the bank can decide which customers they sell to which is where the ambiguity lies

unlike in america when they debt climbs up the govt just prints more money and adds it to the system to give ppl more monopoly money to play with

it’s not the banks money, it’s the allotment for use of customers

So they bank don't pay for the forex? Or are they just facilitating a sale for Central Bank?

W
T
F

I thought Central bank just used to sell it to them and then the bank sell it to its customers and make profit based on the exchange rate.

There is also a buying exchange rate and a selling exchange rate for forex.
In the case of TTD to USD
Buying rate cash is TT6.1000 to 1 USD
Selling rate is TT6.7993 to 1 USD
https://republictt.com/personal/forex-rates

[Chimera]

the forex thing freaking up ppl lives badly and i surprised you dont see it all over social media etc more often


about 2 months ago a woman was almost crying by the counter in rbl chag because she trying to send $500 USD to her daughter in barbados or jamaica or something to pay for university housing and the bank refusing her all week, everyday she going and lining up to request and getting blanked. the university tell her daughter they would evict her if payment isn't received

the woman trip off and start to threaten the bank teller and say she wud remember her face and if she see her outside the bank she wud deal with her and is because she black and the teller indian she blanking her

when you drive through couva/freeport you woud see how much businesses closed down and buildings empty because almost any sort of buy/sell business relies on USD

even for stuff that is manufactured here besides food related products.....you need foreign imports of raw materials

equipment you need usd most of the time.....

things screwed and getting more screwed

i feel they need to add back taxes to hybrids and that would stop plenty of the forex drain

[daring dragoon]

float the dam USD and let it be a level playing field for all. stuart only telling people floating the dollar bad, it go be bad for them who getting preferential treatment now to get the USD. Float the dollar and open up the forex trade.

[pugboy]

for sure them vezel eating a huge amount of forex

[*KRONIK*]

why do trinis need to travel tho

they could just stay here

use skype

Because.... tiktok

[zoom rader]

float the dam USD and let it be a level playing field for all. stuart only telling people floating the dollar bad, it go be bad for them who getting preferential treatment now to get the USD. Float the dollar and open up the forex trade.

Once the float then 1% will become mega billionaires .

All others will be deep in poverty and subjected to neo slavery

[zoom rader]

the forex thing freaking up ppl lives badly and i surprised you dont see it all over social media etc more often


about 2 months ago a woman was almost crying by the counter in rbl chag because she trying to send $500 USD to her daughter in barbados or jamaica or something to pay for university housing and the bank refusing her all week, everyday she going and lining up to request and getting blanked. the university tell her daughter they would evict her if payment isn't received

the woman trip off and start to threaten the bank teller and say she wud remember her face and if she see her outside the bank she wud deal with her and is because she black and the teller indian she blanking her

when you drive through couva/freeport you woud see how much businesses closed down and buildings empty because almost any sort of buy/sell business relies on USD

even for stuff that is manufactured here besides food related products.....you need foreign imports of raw materials

equipment you need usd most of the time.....

things screwed and getting more screwed

i feel they need to add back taxes to hybrids and that would stop plenty of the forex drain

This is what u get voting PNM

[Dizzy28]

float the dam USD and let it be a level playing field for all. stuart only telling people floating the dollar bad, it go be bad for them who getting preferential treatment now to get the USD. Float the dollar and open up the forex trade.

Access will not be made easier through a free float.
You all really think on a free floating system the big business will be put any lower down on a list?

First thing would have to happen would be the equalization of demand and supply. That will take time and average joe still will get limited amount.

[pugboy]

how allyuh planning allyuh summer vacay trips?

[Redress10]

Go out and earn your earn your own foreign exchange.

This was the message from former president of the T&T Manufacturers’ Association (TTMA) Roger Roach to businesses, who are crying out for foreign exchange.

Roach, founder and chief executive officer of Lazuri Apparel Ltd, who served a two-year tenure at the helm of the manufacturers’ body, made the comments to the Business Guardian in an exit interview at the organisation’s head office in Barataria on Monday.

https://www.guardian.co.tt/business/for ... ae58802028

Basically what I have been trying to say. Somebody help, is it illegal to earn forex seeing that central bank controls all of it? Why aren't individuals and companies encouraged to earn their own forex via exports and services?

[MaxPower]

how allyuh planning allyuh summer vacay trips?

Normal bro,

8k FCB
5k RBL
2k Scotia
1k back up RBL

And i have a lil cash for tipping etc, not tipping any Trinis working over there, they too rude.