well aware, demand for foreign exchange from the business community and the public is perennially high, but supplies come to the market at discrete intervals, usually when energy sector companies convert foreign exchange with the banking system to pay local bills. so foreign exchange supplies to the country come in two ways : 1. directly to the central bank when energy companies pay their quarterly taxes in us dollars and ; 2. when energy companies convert us dollars through the banking system year - round to meet local commitments. however, demand is always higher than supply and these gaps result in shortfalls in the system and it is at these points when central bank steps in to meet the shortfalls by selling foreign exchange from our stock of official reserves. therefore, central bank only enters the system to meet shortfalls in foreign exchange supply, not to provide the entire supply to the financial system. right now we account for just over 25 percent of the total foreign exchange supply while the money that comes directly from the energy companies account for the rest. what then, based on this structure, has created all the noise in the past year? there was a time when shortfalls would occur seasonally, close to christmas and the hectic august travel period. over the last two decades, demand for foreign exchange not only expanded but its composition has also changed to reflect new patterns of consumer spending, for example, bis central bankers ’ speeches use of credit cards for making online payments. today is now known as “ cyber - monday ” in the united states and many locals will flood us retailers ’ websites from the comfort and warmth of their homes in trinidad and tobago thanks to the internet, credit cards and us delivery addresses. foreign credit card purchases devoured us $ 570 million for the year so far. that excludes today ’ s cyber - monday sales and upcoming christmas purchases. last year, foreign credit card payments consumed us $ 530 million. that is more than us $ 1 billion spent foreign credit card purchases in just two years. commercial banks must meet these credit card payments before they meet any other foreign exchange demand. that ’ s one source of demand, then there ’ s that double - digit growth in sales of new cars, many of which are higher - end luxury vehicles. for the year so far, we ’ ve spent us $ 205 million on purchases of new cars ; last year that figure was us $ 340 million. that is nearly us $ 750 million on purchases of new cars in two years. foreign currency deposits are another source of foreign exchange demand

consultations with key stakeholders in the financial services industry. subsequently, a revised ppd will be used to finalize the various policy provisions of draft legislation relating to a statutory financial services ombudsman. we anticipate the entire process to run for at least one year. bis central bankers ’ speeches ladies and gentlemen, i would like to conclude by congratulating ms. suzanne roach, the current financial services ombudsman, her predecessors, and their respective staff, for shaping a formidable institution over the past decade. i would also like to thank batt, attic and the tha for their unstinting support for the ombudsman scheme. i certainly look forward to the office of the financial services ombudsman assuming a more prominent role in the country ’ s financial strategy over the next decade. i thank you. bis central bankers ’ speeches