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TT dollar strengthens against USD

Monday, January 5, 2015

Central Bank online data shows that headline inflation stayed at nine per cent in November, while core inflation rose to 1.5 per cent, according to the latest RBC Caribbean Economic Report released December 31. “Net official reserves hit US$11.1 billion in October 2014—the highest level ever—which we estimate at 12.38 months of import cover,” the RBC release stated.

“Alongside this, the TT dollar (TTD) continues to appreciate against the US dollar (USD), averaging $6.3607 in November 2014—1.66 per cent above the March 2014 record low of $6.4686. “Also, for eleven consecutive months, from December 2013 to October 2014, the level of USD deposits has declined year-on-year, now standing at 23 per cent of total deposits, down from 25 per cent in 2013 and 26 per cent in 2012. This trend was last seen from mid-2010 to mid-2011.”

S&P expects growth to average two per cent over the next four years, RBC said, based partly on increased oil and gas exploration activity, despite lower energy prices. T&T’s inflation rose to nine per cent in October, the highest since October 2012 when it was 9.4 per cent, according to Central Bank data. 

October last year saw 2.7 per cent inflation. For the first half of 2014, inflation remained stable below five per cent, but began to climb steadily from 5.9 per cent in July, to 7.4 per cent in August, to 7.8 per cent in September.


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