Caption: Minister of Finance Davendranath Tancoo
By Alicia Chamely
MINISTER of Finance Davendranath Tancoo has announced five initiatives to address foreign exchange shortages.
Tancoo revealed his Ministry’s plans during his presentation of the Finance (Supplementary Appropriation) Bill 2025 and Mid-Year Review 2025 on Wednesday at the first session of the 13th Parliament held at the Red House, Port-of-Spain.
He listed five plans to be carried out to ensure fair, equal access to the nation’s foreign exchange.
Tancoo said the first order of business was to establish a Foreign Exchange Allocation Committee, which would bring “greater transparency, equity and strategy to the allocation of scarce FX resources.”
He said to ensure foreign exchange inflows and outflows were aligned with the country’s economic priorities, the government would implement reporting obligations for high-volume importers.
The third initiative he mentioned was the development of repatriation protocols, investment protections frameworks and dividend safeguards to boost investor confidence in Trinidad and Tobago’s economic institutions.
Tancoo said they would draw on best practices, such as those practiced by Barbados.
He said another step in securing the nation’s foreign exchange was to explore foreign currency tax exemptions and investment tax credits.
Tancoo said these would act, “as tools to encourage the retention and reinvestment of foreign earnings within the domestic economy.”
Lastly, he said the Ministry of Finance would, “Review Trinidad and Tobago’s network of bilateral tax treaties and work with CARICOM partners to advance regional tax harmonisation, promoting cross-border investment and reducing administrative burdens on regional businesses.”
Tancoo said these measures to protect, earn and fairly distribute our country’s foreign exchange would go hand-in-hand with the government’s focus on economic diversification through export.
He said to strengthen the export industry the government would take vital steps such as introduce an Export Allowance and Export Growth Incentive, with a focus on high-potential non-CARICOM markets, and expand international trade representation.
Tancoo said considerations were being made to establish an Export Proceeds Retention Facility.
He said this would enable exporters to retain a portion of their foreign currency earnings, giving them more predictable access to foreign exchange for reinvestment and operational expansion.
