Budget 2016 Update: Sinckler says no new limits to be imposed on foreign exchange.


Finance Minister Chris Sinckler assures the Government will not be introducing any special measures to limit citizens or businesses from accessing foreign exchange in Barbados.

“What is already provided for in the Exchange Control Act of Barbados is sufficient. Indeed, any casual observer of how the foreign exchange market has evolved in Barbados over the last 10 to 15 years would conclude that far from putting restrictions both this administration and the last have in fact liberalized such controls progressively.

“There are no conditions at present that would lead us to conclude that we need to reverse that stance. Equally, there is nothing in the current or medium to longer-term trends to even remotely suggest that any adjustment to the official exchange rate in Barbados is required.”


One Response to Budget 2016 Update: Sinckler says no new limits to be imposed on foreign exchange.

  1. Hal Austin August 17, 2016 at 4:25 am

    Foreign reserves were the macroeconomic tool of the post war years. They are not needed in modern economics.
    The central bank can hedge its foreign reserves needs against a basket of goods and services in the futures market with a three-month rolling hedge.
    Having a billion Barbadian dollars locked up in reserves (mainly invested in US gilts) is like having money in a deposit account while running up massive debt. Why is little Barbados lending money to the US, which is what gilts are) i a low interest environment?
    At the very least, the finance minister should use half of the foreign reserves to invest in infrastructure – house building, transport (ie use the Roebuck St site of the Transport |Board to develop top class apartments, offices, shops and leisure facilities) for a rising middle class, move the TB to St John, the poorest parish in the country and the strongest DLP constituency, etc.
    Think big.


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