Trinidad's forex squeeze tightens as the IMF nudges Port of Spain toward a weaker TT dollar

The IMF’s 2026 Article IV review projects growth near 0.8% and reserves drifting down toward roughly US$4.8B, and it urged Trinidad to improve the functioning of its FX market and gradually allow more exchange-rate flexibility. Businesses have complained for years that US dollars are hard to source at the managed rate near TT$6.80, with a parallel market trading dearer.

No adjustment has been announced. But the combination of falling reserves and unusually direct Fund language is the clearest signal yet that the current setup is straining.

What this means for you: Holders of TTD savings face the risk that an official rate change erodes US-dollar value at a stroke; a partial hedge is prudent. Senders to family in Trinidad would, conversely, see their dollars go further after any adjustment. Property buyers should price currency risk into today’s negotiations rather than assume the rate holds.