IN just three months, RBC will have reduced the foreign exchange (forex) limits for its personal and business banking credit cards by 73%.
On September 1, RBC reduced the monthly limits for personal and business banking clients (excluding private banking) from TT$51,000 (US$7,500) to TT$41,000 (US$6,020).
Yesterday, RBC announced a further reduction in these foreign exchange limits, effective December 1.
According to a notice issued by the bank, credit cardholders’ monthly limits will be further reduced from TT$41,000 (US$6,020) to TT$14,000 (US$2,058).
“RBC is committed to being the bank for all of you and to providing optimal choices for our clients. Given the ongoing foreign currency supply constraints, we need to regularly review FX limits on our clients’ credit cards, while striving to balance the needs of our clients with the availability of foreign exchange (FX) supplies,” the notice yesterday stated.
“As a result, effective December 1, 2024, FX limits on RBC credit cards will be adjusted as follows: personal banking and business banking clients (excluding private banking): credit card holders’ monthly limits will be reduced from TTD41,000 to TTD14,000 in FX equivalent to a maximum of the account’s credit limit, whichever is less,” the notice stated.
RBC stated that the local TT dollar transactions remain unaffected.
It also encouraged private banking clients to contact their private bankers for further information.
This move by RBC comes just over one week after Scotiabank announced plans to lower the US dollar spending cap on its credit cards.
Effective December 1, weeks before Christmas, Scotiabank customers with personal credit cards, with the exception of the Aero Mastercard Black, will face a reduced maximum limit of US$2,000.
On Tuesday, the Bankers Association of Trinidad & Tobago (BATT) issued a release stating that it was “acutely aware and deeply concerned” about the ongoing foreign exchange (forex) challenges facing the country.
“BATT members remain committed to collaborating with the Government to address these pressing issues that are affecting both the business community and the wider public,” it stated.
BATT stated that it remains eager to continue discussions with the Government and the Central Bank of Trinidad and Tobago, with the aim of developing an approach that serves the interests of all stakeholders to the greatest extent possible.
On the same day, in a separate press conference, Finance Minister Colm Imbert announced plans to engage with stakeholders to assess whether the current “honour system” for forex distribution should be revised.
Imbert said that, as it stands, the Central Bank allocates forex to commercial banks based on their size, number of branches, and customer base.