A PRIVATE motion brought by Independent Senator Amrita Deonarine calling on government to bring to Parliament a foreign-exchange (forex) policy within six months was defeated in the Senate on Tuesday.
If successful, the motion would have forced government to table in Parliament within six months, a comprehensive policy framework that will guide key stakeholders, how it Government intends to navigate the tightness in the foreign exchange (forex) market to overcome downside risks in the medium and long-term.
This came after the Senate rejected separate amendments proposed to the motion by Deonarine and Tourism Minister Randall Mitchell. In all three cases, the votes between government, opposition and independent senators were tied, prompting Senate President Christine Kangaloo to break the tie with a casting vote.
As she concluded the debate, Deonarine proposed an amendment to her original motion, which removed the words "comprehensive" and "downside risks." Deonarine said it was "difficult in a dynamic environment with an energy- based economy that is faced with volatility to overcome downside risks in the medium and long term because policy measures are always subject to revision."
Leader of Government Business Dr Amery Browne requested a ten-minute suspension of the sitting. When the sitting resumed, all 15 government senators voted against Deonarine's amendment. The six opposition senators and the nine independent senators voted for it.
Kangaloo explained that in exercising her casting vote, regarding an amendment to a motion, the consideration was to keep the motion in its original form and maintain the status quo.
After Deonarine's amendment was rejected, the Senate considered Mitchell's amendment which proposed that Government give a statement in Parliament in six months about how it plans to address the forex situation.
All 15 government senators voted for this amendment. The six opposition and nine independent senators did not. Kangaloo then cast her vote, resulting in Mitchell's amendment being rejected.
When the vote on Deonarine's original motion was called for, government, opposition and independent senators were tied for a third time. On this occasion, Kangaloo voted with the Government and the motion was defeated.
Before the vote, Minister in the Ministry of Finance Brian Manning said, "The issue is a simple one. Today in Trinidad and Tobago, the demand for forex outstrips the supply." He added this is "a situation that will be brought to equilibrium over time."
[caption id="attachment_952005" align="alignnone" width="1024"] Brian Manning -[/caption]
He reiterated that devaluation of the TT dollar was not a solution to TT's forex challenges
"What a devaluation does, is that it increases the cost of forex. That will reduce the demand for forex, to bring that excess demand in line with the normal supply."
Manning said Government is working to avoid a devaluation of the TT dollar because "we live in a society that is heavy on importation" He added, " A devaluation will cause an
