DEVALUATION OF THE Barbados dollar is not an option.
Minister of Finance Chris Sinckler made this clear yesterday in response to concerns over the potential impact the Central Bank of Barbados’ financing of part of Government’s deficit on the country’s foreign exchange reserves, could have on the value of the Barbados dollar.
Sinckler said: “There is no imminent or perceivable conditions under which a devaluation of the Barbados dollar will be allowed to happen, or be chosen as an option by the Government.
“This is established, long-standing Government policy and the cornerstone of the county’s social, economic and political stability. It will not change.”
While conceding that the Central Bank’s accommodation of Government’s financing needs – termed “printing money” – was not the preferred option for a small open and foreign exchange-constrained economy, Sinckler said the occurrence at this time had not directly impacted the reserves as was being promoted, and definitely had not put the value of the local currency at any identifiable risk in the short or medium term.
Please read the full story in today’s Midweek Nation, or in the eNATION edition.