FINANCE Minister Colm Imbert slammed Opposition Senator Wade Mark for trying to scare the population into believing the Trinidad and Tobago dollar would be devalued.
He did so while responding to a question from Mark in the Senate on Tuesday, about a recent International Monetary Fund Article IV consultation on TT, which said the country's real effective exchange rate was overvalued by 20.4 per cent.
Mark asked whether TT's real effective exchange rate was overvalued by 20.4 per cent and what action, if any, would be taken to address this.
Imbert countered that Mark's question gave the population an insight into what the UNC could do if it returns to office.
"It is obvious that the UNC, if ever they get into government, in and around the year 2040 – 2050, I'm sorry – might want to devalue the currency. That's obvious."
Imbert said it was also obvious that Mark had not read the entire IMF report.
"If he read on page 37 of the Article IV consultation, between TT and the IMF, which is an obligation of all member countries who are members of the IMF, you will see this statement, 'monetary and exchange policy, page 37."
Imbert quoted the statement.
"The authorities prefer to maintain the status quo in the exchange-rate regime."
He opined that Mark had not read and understood what this statement meant.
"We intend to maintain the status quo with respect to our exchange-rate regime. We do not intend to devalue the currency. There is absolutely no reason to do so."
Imbert told senators there are no situations which could lead to a currency crisis. He identified some of them as "balance-of-payment problems, deficit in our current account."
Imbert also said TT had adequate foreign reserves.
"I would ask Senator Mark to stop trying to scare people with this kind of nonsense."
Senate President Christine Kangaloo disallowed a follow-up question from Mark about an alleged black-market exchange rate. Imbert remarked, "A ridiculous question."
His remark brought a word of caution from Kangaloo.
Mark then asked a question about exporters and foreign exchange. Kangaloo responded, "Senator Mark, that question does not arise."
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