LARRY HOWAI has been appointed Governor of the Central Bank of Trinidad and Tobago for a five-year term鈥攖he maximum allowed under current legislation.
Howai was appointed on Tuesday by President Christine Kangaloo for a term of five years, the Central Bank stated yesterday.
The Central Bank Act was amended in 2020 to revise the Governor鈥檚 term from a fixed five years to a range of three to five years, just as then-governor Dr Alvin Hilaire鈥檚 initial five-year term was coming to an end.
Hilaire, who was deputy governor at the time, was first appointed governor in December 2015 following the dismissal of former Central Bank governor Jwala Rambarran.
After serving an initial five-year term, Hilaire was granted two consecutive three-year terms.
Although his term was scheduled to end in December 2026, it was cut short this week by a Cabinet decision, and he was replaced by Larry Howai.
Howai鈥檚 selection has received broad support from the business community and financial stakeholders, who cite his deep experience in both the private and public sectors.
Howai, a former minister of finance and the economy, also served as chief executive officer of the First Citizens Group.
鈥楤usiness community hopeful鈥
The Trinidad and Tobago Chamber of Industry and Commerce yesterday welcomed Howai鈥檚 appointment.
鈥淕overnor Howai鈥檚 long-standing executive career in banking and financial services and his previous tenure as Minister of Finance, position him uniquely to guide the Central Bank at this critical juncture in our nation鈥檚 economic development,鈥 it stated.
鈥淭he Chamber continues to recognise the need for enhanced collaboration between financial regulators and the business community to strengthen foreign exchange availability, modernise payment systems, and improve access to finance for Small and Medium Enterprises (SMEs) and emerging industries.
鈥淲e are, therefore, encouraged by Governor Howai鈥檚 strong track record of strategic thinking, stakeholder engagement, and commitment to good governance,鈥 the TT Chamber stated.
Chaguanas Chamber of Commerce president Baldath Maharaj said Howai鈥檚 appointment brings a welcome sense of competence and continuity to the role.
鈥淭he business community is hopeful that, under his leadership, we will see greater emphasis on improving access to foreign exchange for small and medium-sized enterprises, reducing long delays in approvals, and creating a more predictable environment for commercial transactions,鈥 Maharaj said.
He also called for better communication between the Central Bank and the private sector on inflation, exchange rate stability, and liquidity.
鈥淥ur members need fair and transparent access to foreign currency and a policy framework that enables them to plan with certainty. We stand ready to collaborate with Mr Howai, who is also a resident of Chaguanas, to find practical solutions that support sustainable business growth and the long-term interests of Trinidad and Tobago,鈥 he added.
Chairman of the Confederation of Regional Business Chambers (CRBC) Vivek Charran also endorsed Howai鈥檚 appointment, but warned that tackling the country鈥檚 chronic foreign exchange shortages will require more than a change at the helm.
鈥淲e support the appointment of Mr Howai鈥攈e certainly has the experience and sat in the hot seat for a number of years as finance minister,鈥 Charran said.
鈥淭he question of decreasing forex woes is a multifaceted one. The question of impact on forex has to be done in stages. First, we must determine how forex was distributed and spent under the previous administration鈥攚hether that was an efficient use of scarce forex funds鈥攁nd then decide on the way forward, incorporating any necessary changes,鈥 he said.
Charran stated the issue extends beyond the Central Bank Governor鈥檚 remit and must be tackled by increasing national forex earnings.
鈥淭he overall supply of forex is a situation larger than just the Governor. It鈥檚 essentially about how we increase our forex revenues in a way that grows the reserves in the Central Bank. Those reserves can then be earmarked for sale and distribution to all commercial bank customers, after the banks meet their own obligations such as credit card settlements,鈥 Charran said.
鈥楶ositive impact鈥
President of the Couva/Point Lisas Chamber of Commerce Deoraj Mahase also backed the decision, describing it as a step toward maintaining financial accountability and institutional standards.
鈥(His experience) gives him valuable knowledge of forex management for the country. As it relates to the business community and the national economy, his level of expertise in understanding the current situation can have a positive impact in implementing systems to address the challenges of foreign exchange availability鈥攂oth for the business community and nationally,鈥 Mahase said.
President of the Greater San Fernando Chamber of Commerce Kiran Singh said Howai鈥檚 public and private sector experience makes him well-positioned to lead the Central Bank. He pointed out that SMEs are especially eager to see improvements.
鈥淔or some time now, we have felt that the distribution (of forex) has been inequitable. When we look at import-oriented organisations, some appear to have no problems with forex access while others complain bitterly about inadequate supply and reliance on the black market.鈥
Singh noted the structural limitations tied to the energy sector鈥檚 foreign exchange earnings and said import substitution must be a longer-term goal.