Scotiabank in Trinidad announces new foreign exchange limits for customers

PORT OF SPAIN, Trinidad, CMC – Scotiabank in Trinidad has announced new measures for providing foreign exchange to its customers, saying they are necessary “as we continue to navigate the foreign exchange considerations” prevailing in the country.

In a letter to its customers, the bank said that effective December 1, 2024, the maximum US dollar spending limit per calendar month on their Scotiabank credit cards will be reduced to US$5,000 and US$2,000 respectively until further notice.

“This change includes all transactions conducted outside of Trinidad and Tobago along with all international online transactions. All local TT dollar transactions conducted online or at merchants remain unaffected,” it added.

But it noted that “the option to use your ScotiaCard Visa debit for overseas point of sale (POS) transactions and ATM withdrawals will no longer be available.

“We recognise that the situation has been challenging and we thank you for your continued understanding throughout these changes,” Scotiabank said in its communication to customers.

In addition, the bank also announced that as of December 8 this year, there will be an increase in the annual fees and interest rates on credit cards.

The annual membership fees will now range from TT$180 to TT$4,200  annually, while the interest rates will be between 26.20 to 28.99 per cent.

“After holding our prices steady for the past five years, inflation and increased operating costs associated with improving digital platforms have reached to the point where price adjustments are needed,” said Soctiabank.

Trinidad and Tobago has had a foreign exchange problem for years, and earlier this week, Finance Minister Colm Imbert said that the public should not be held to “ransom” with a threat of increased prices for the restructuring and rationalisation of a foreign exchange service that was introduced as a “temporary measure” during the coronavirus (COVID-19) emergency.

Imbert said it was well known that in 2020, as a result of the looming trade crisis brought on by the pandemic, the government took the decision to temporarily allow wholesale importers of essential goods access to EXIMBANK services.

He said that the entire initiative was again outlined in the 2025 national budget and that it was well known that the initiative was “always subject to periodic review”.

During his budget presentation last month, Imbert told legislators that in 2025, to further bolster the country's reserves, “we plan to introduce legislation to encourage energy sector companies to remit all their taxes to the government in US dollars.”

He said even though all energy exports from Trinidad and Tobago were sold internationally for US dollars, he had done a detailed analysis and learnt that only 50 per cent of the money paid to Trinidad and Tobago was in the form of US dollars, with the other 50 per cent paid in local currency dollars.

“This is despite the fact that 100 per cent of the exports of oil, (natural) gas and petrochemicals are (paid) in US dollars, Imbert said, adding “so it is something we need to deal with.”

Last month, Imbert told a Trinidad and Tobago Manufacturers' Association (TTMA) post-budget discussion that there was a shortage of foreign exchange and attributed the problem to increasing demand.

“There is an appetite to buy foreign goods, there is a demand for foreign exchange, and you have shortages,” he added.

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