The Price of Money

PriceSmart, the largest warehouse club in the Central America and the Caribbean is feeling the pressure of limited foreign exchange reserves. The Company’s Trinidad & Tobago subsidiary recently borrowed US$12M to finance its operations and lists the limitations of converting local currency to US dollars as a significant challenge.

The shopping giant is currently working with banks to use other currencies such as CAD or EUR until more USD becomes available. The added transaction costs of converting TTD to EUR/CAD to USD will be reflected in their pricing model.

Link: http://www.nationnews.com/nationnews/news/95830/pricesmart-borrows-ususd12m-finance-operations

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The Caribbean Association of Banks, Inc. is the representative body and recognized voice for banks and other financial institutions in the Caribbean. We seek to influence policies and legislation which impact the sector by advocating on our members’ behalf and participating in the global network of similar institutions.

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