Monday, February 13, 2017

B’dos Central Bank worries about forex*


BRIDGETOWN
 
THE Governor of the Central Bank of Barbados (CBB) Dr DeLisle Worrell says the island has failed to achieve a balance between foreign exchange inflows and outflows, which is the foundation for growth in a stable economy.
Worrell in his January economic letter, titled “We are the Craftsman of our Economic Fate” noted that this situation has existed since 2013. “We know when we have achieved that balance because in that case we do not have to dip into the Central Bank’s reserves of foreign currency to make up the difference.
“The country has failed to achieve that balance since 2013 and there remains a need to dampen spending further in order to protect the country’s reserves of foreign exchange,” Worrell wrote.
He said the reserves are what protect the country from the devaluation of the local currency, adding that the Central Bank remains in a position to provide US dollars “at the two-to-one exchange rate to meet all legitimate needs, if no other source is sufficient”. 

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