THERE IS NO MYSTERY behind Barbados’ foreign reserves dipping in the last two years, says Minister of Finance Chris Sinckler.
The drop is due to Government’s decision not to borrow in foreign currency since 2014 to shore up the foreign reserves, as was done in the past, including under the Owen Arthur administration.
Sinckler told the DAILY NATION the Freundel Stuart administration opted last year to repay a major foreign loan that became due out of available reserves rather than borrow to roll over the loan.
He said with such a policy, Government expected that at some periods, particularly if there were delayed projects’ inflows, the reserves would dip. (SP)
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