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Persaud backs Worrell on IMF

Persaud backs Worrell on IMF Professor Avinash Persaud (FP)

Thu, November 01, 2012 - 12:09 AM

CENTRAL BANK GOVERNOR Dr Delisle Worrellis getting the support of another top economist in standing up to the International Monetary Fund’s (IMF) suggestion that devaluation could be good for the Barbados economy.

Professor Avinash Persaud says Worrell was right to hold his ground in the face of IMF managing director Christine Lagarde contending that devaluing the Barbados dollar would make tourism – the country’s biggest foreign exchange earner – more competitive and help the economy to grow.

“On the issue of whether a devaluation is right for Barbados, Governor Worrell is absolutely correct. Indeed, it is interesting that the IMF should be devoting so many resources to preserving European Monetary Union that is a fixed exchange rate system and then questioning such systems elsewhere where they are arguably more appropriate.

“From a Barbados perspective it doesn’t make sense. It would contract the economy and we’re right to avoid it,” he told the MIDWEEK NATION, after issuing a statement on the issue. (DP)

Please read the full story in today’s DAILY NATION, or in the eNATION edition.

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Posted by Tony Webster 1 year, 9 months ago
Are we competitive in selling our goods and services overseas, with our CARICOM siblings? With all other known and anticipated competitors?

With oil reserves safely butressing their currency, why did Trinidad -of all CARICOM folks- choose to significantly devalue their currency when taking the decision to let it float? Did this have any hand in the demise of our garment and furniture exports to T&T?

How fares our OECS neighbours' tourism, at USD$1- $2.70?

While it might be comforting to hold onto our current peg, - we also hold dear to the notion that our tourism industry is safely supported by friends in the UK, Canada, and USA- this peg should be periodically reviewed, in the context of changing circumstances. It might even be a Godsend, to have someone to "blame"…like Madame LeGarde! God favours the Brave, and should also favour the Very Brave. No, I do not at all support floating our currency; no way.

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Posted by Rochelle Taitt 1 year, 9 months ago
All countries are members of the IMF and as such they pay dues - the countries like the USA and other European countries pay larger dues and get a greater say.

They are working in the interests of their own economic growth at the detriment of small island developing nations and we should not be pushed into devaluing our dollar!

Think about it! if our dollar is devalued it makes it cheaper for them to invest here in ways that no Barbadian could! We would then see how petty our concerns about T&T investments are when faced with neo-colonialism!

if they control the economy, they control us! Hold tight and we will ride this out!

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Posted by Hard Ball 1 year, 9 months ago
The IMF + devaluation = ECONOMIC BONDAGE
Well said Rochelle

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