Chairman: Angostura helps TT forex woes
Written by Enrique Rupert on December 10, 2024
ANGOSTURA chairman Terrence Bharath says that the company does not deplete the limited foreign exchange available in the country, but instead brings in US dollars and facilitates the import of foreign products through its own foreign exchange reserves.
He made this statement during Angostura’s Earning Call meeting at the House of Angostura, Laventille on December 9.
Bharath said the company does not drain the country when it needs to buy raw materials or ingredients needed to make its products, but instead uses their own US.
He said he envisions the expansion of Solera Wines and Spirits.
“Solera is going to expand within the next few coming days. In the coming days we have some surprises for you with Solera.”
Bharath explained that the company uses its foreign exchange reserves to introduce foreign brands to consumers in the country.
“We don’t go to the bank to get foreign exchange to do it. We don’t drain the coffers of foreign exchange or the economy.
“We use our foreign exchange to buy third-party items like Tito’s, Desante, MacArthur’s Whisky and so many different brands we have in Solera.”
Bharath emphasised that this approach helps consumers spend less foreign exchange abroad, as these products can be conveniently purchased locally.
“No drain on the economy, the public gets a chance to experience international brands and we pump US back into the system.”
Angostura’s chief financial officer (CFO) Amar Seechan said its net US earnings was US$57 million over the last five years.
“It has contributed over US$51 million in the local banking system for the same period.
“The group’s US dollar investment average around US$74 million annually, closing at US$77 million at the end of quarter three in 2024 – highest in the last five years.”
In the last few months, two banks have altered their foreign exchange limits on credit cards.
Royal Bank of Canada (RBC) announced a 66 per cent reduction in the foreign exchange (forex) limits on its personal and business banking credit cards on November 8, effective December 1.
Credit-card holders’ monthly limits were reduced from approximately $41,000 (US$6,020) to $14,000 (US$2,058).
The bank said it was committed to providing optimal choices for all its clients.
“Given the ongoing foreign currency supply constraints, we need to regularly review forex limits on our clients’ credit cards, while striving to balance the needs of our clients with the availability of forex supplies.”
Scotiabank also sent an email to some customers on October 30 and said it would reduce the US spending limit on its credit cards and stop the use of its Visa debit card for overseas transactions from December 1.
Last September, Republic Bank advised customers of changes to come into effect in that month. This involved the US-dollar limit on its credit cards being reduced from US$10,000 to $5,000 per cycle.
When asked what was the percentage of revenue from export and domestic sales, Seechan said up to the third quarter this year it was 41 per cent export and 59 per cent local.
“That used to be 65 per cent local and 35 per cent exports. We have changed on growing the dynamics in international markets.”
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