Take decisive action now to preserve the BDS$2 to US$1 exchange rate and increase the foreign exchange reserves.
That, essentially, is what The Barbados Bankers’ Association (TBBA) is urging the Freundel Stuart administration to do without delay to avoid any threat of devaluation.
Further, the association, which comprises the island’s five commercial banks, wants Government to go to the International Monetary Fund (IMF) to secure short-term funding to give an immediate boost to the foreign reserves, now at their lowest level in 22 years.
“Like most people observing the developments in the Barbados economy, we are concerned that on the current trajectory the Central Bank will be unable to defend the currency peg and the Barbados dollar will devalue if nothing is done to stop the decline,” said TBBA president Donna Wellington. (SP)
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