Maroc - NEWSDAY.CO.TT - A la Une - Hier 16:15

PriceSmart: Forex conversion woes in Trinidad and Tobago

PRICESMART is having difficulties accessing foreign exchange, reporting in its quarterly report for the period ending November 30 that it held US$70.1 million in Trinidad and Tobago dollars which it could not change to a tradeable currency. PriceSmart has four membership shopping warehouse clubs in Trinidad – Port of Spain, Mausica, Chaguanas and La Romaine. The company's financial statement, published on January 8, acknowledged the company has, from time to time, experienced a lack of availability of US dollars in certain markets which impedes its ability to convert local currencies obtained through merchandise sales to settle US-dollar liabilities associated with its imported products or otherwise fund its operations. Trinidad and Tobago was singled out, as it said: "For instance, since fiscal year 2017, we have experienced this situation in Trinidad and have been unable to source a sufficient level of tradeable currencies. We are working with our banks in Trinidad and government officials to convert all of our Trinidad dollars into tradeable currencies. Our balance as of November 30, 2024, of Trinidad dollar-denominated cash and cash equivalents and short- and long-term investments measured in US dollars was US$70.1 million, a decrease of US$30.4 million from the peak of US$100.5 million as of November 30, 2020. "However, as the Trinidad Central Bank strictly manages the exchange rate of the Trinidad dollar with the US dollar and affects the level of US dollar liquidity in the market through its interventions, we are subject to continued challenges in converting our Trinidad dollars to US dollars, as well as being exposed to the risk of a potential devaluation of the currency." However, it said it also experiences similar difficulties in Honduras, where it has three warehouse clubs. It said in fiscal 2023, the Honduran Central Bank began limiting the availability and controlling the allocation of US dollars for the conversion from Honduran lempiras. "As of November 30, 2024, our Honduran subsidiary had approximately US$10.9 million of cash and cash equivalents and short-term investments denominated in lempiras, which cannot be readily converted to US dollars for general use within the company. It said it was working with itsbanking partners and government authorities on this situation. PriceSmart runs 54 warehouse clubs across 12 countries in the regions of the US, Central America, the Caribbean and Colombia. The company said other factors affecting overall business include inflationary pressures, though reduced, from the pandemic and supply-chain disruptions, currency fluctuations, devaluation of local currencies, political instability and natural disasters. Despite this, the company recorded revenues in excess of US$4.9 billion in fiscal year 2024. "We believe PriceSmart has become one of the most respected and trusted brands in the region. With nearly two million membership accounts and almost four million cardholders, we believe PriceSmart is an essential part of the shopping experience for consumers and small businesses in PriceSmart’s markets." The consolidated financial statements listed a 7.6 per cent increase in revenues for the fourth quarter of 2024. This amounts to US$1,257,944,000, compared to US$1,166,475,000 for the same period in 2023. The post PriceSmart: Forex conversion woes in Trinidad and Tobago appeared first on Trinidad and Tobago Newsday.