Trinidad & Tobago Dollar

Evolution of the TTD Exchange Rate

The Trinidad and Tobago Dollar (TTD) has experienced both ups and downs in its exchange rate over time. It has generally been a stable currency but has faced some volatility due to various factors such as fluctuations in oil prices, which heavily impact the country's economy. In recent years, the TTD has depreciated against major currencies due to a decline in oil prices and slower economic growth.

Variations in the TTD Exchange Rate

The TTD exchange rate has shown variations over time. It has appreciated against some currencies during periods of economic growth and increased investor confidence. On the other hand, it has depreciated during times of economic downturns and external shocks. Factors influencing these variations include changes in oil prices, government policies, and global market conditions.

Significance of TTD in the Global Economy

The TTD plays a relatively small role in the global economy due to the limited size of Trinidad and Tobago's economy. However, it is important for the country's trade and international transactions. The TTD is primarily used as a domestic currency but is also accepted in a few neighboring countries. It is primarily traded in the local foreign exchange market and has limited international exchange and liquidity.

Shocks Experienced by TTD and Correlation with Other Currencies

The TTD has experienced shocks related to fluctuations in oil prices, as Trinidad and Tobago heavily relies on oil exports. Changes in oil prices often result in movements in the TTD exchange rate. In terms of correlation with other currencies, the TTD generally has a weak correlation with major global currencies such as the US Dollar or Euro. Instead, its movements are more closely tied to regional factors and events occurring within the Caribbean and Latin American region.