Generating and Protecting Our Forex

Barbados forex fell by 63 million dollars

It is unfortunate that when some of us try to engage in a constructive debate about the economy, motivated only by love of country, others trivialize the attempt because they are blinded by party colours.

BU continues to be disappointed that despite the protracted volatility of the global economy, it seems to be having a null effect on the mindset of Barbadians and the political directorate. Instead of reconciling to a position to what we can do for our country, we continue to demand, demand, demand, more, more, more. Years and years of becoming bloated as a result of borrowing has caught up with us.

The time has come to select a new path. The aged model which has served us well must be dispensed with if we are to sustain our current way of life. Yes this government is to be commended for the increased dialogue about Renewable Energy (RE), and those policy initiatives which seek to wean Barbadians from its almost total dependence on fossil fuel. BU suggests that we have not done enough.  Why can’t motor dealers be incentivised to sell Hybrid vehicles NOW? Why can’t taxpayers get a 2-3 year shelter up to 80% on tax filings when they retrofit their homes with RE devices NOW? We need to take significant decisions to kickstart desired behaviours. We give RE incentives yet facilitate the increase of vehicles which run on fossil fuel.

The recent statement by the Governor of the Central Bank and the Minister of Finance about the need to protect foreign reserves should be examined against government’s public energy policy. Did the Minister of Finance  increase the taxable value of motor cars and reduce the excise tax on motor vehicles by 25% so that sales on mid-size cars in Barbados can trend North? Minister of Finance reported that he was responding to concerns of the motor vehicle dealers in Barbados who have cried out that motor car sales have slumped by 60%.

BU understands that this forex consuming beast known as motor vehicle dealers employs a number of people. A useful discussion therefore is to weigh the pros and cons of government’s decision given its impact on forex outflow. What we know is that the handout to the motor dealers will firm up existing behaviours. Should the government be doing the opposite?

Is it possible to have a discussion about how serious we are as a country about generating and protecting forex in Barbados? Are we on the right track? The government gets some points for its RE policy but is seems to be trapped in the lethargy caused by our civil service for which its reputation is well known.

0 thoughts on “Generating and Protecting Our Forex


  1. Anybody hears you David would think there is a spending boom going on in BIm…exactly the opposite.Supermarkets Banks Btown Stores begging for patronage….How that forex is hemorrhaging is probably thru foreign banks and companies repatriation of profits…nothing less….nobody can tell me that is from buying foreign goods n food for hotels or big Tv’s for bajans.


  2. @David,
    Cropova, Proppa Pork, rum and endless wukkin up.

    What Forex? What economic problems?

    De party can’t done!

    Barbados is Utopia.


  3. There are already significant tax allowances in place for RE. The problem is that they are not easily understood or accessed. Somehow, Government needs to make this easier for us, the consumer if it is serious about pushing the green economy.
    I agree about cars. An important element of the plan to make Barbados green, must be to reduce or better still abolish import duties and VAT on hybrid and electric vehicles.
    Larger countries have problems with electric cars because they only run for 100 miles on a charge. We don’t have that problem here. When did you last do 100 miles in a day?


    • @St. Georges Dragon

      Can you list the ‘significant allowance’ to which you refer in place for RE?


    • @Onions

      You need to shift gears. BU is focused on the future you appear to be operating in the realm of the present.

      On 12 July 2012 02:35, David wrote: > @St. Georges Dragon > > Can you list the ‘significant allowance’ to which you refer in place for RE? >


  4. @ David
    If INFLOWS have decreased….(IBC’s corp taxes)….. and OUTFLOWS remained same..obviously …..there will be a DECREASE in forex.


  5. @ old onion bags,

    I will never laugh at my Bajan family and friends.

    You know that I telling the truth.

    The majority of Bajans focusing on Cropova. I even went on you tube to listen to 2012 cropover tunes and I doan even live down dey.
    Cause I is a Bajan. lol

    Nuh pork fuh me doh. De docta seh Salmon an chicken only.


  6. Crop ova ..dear Hants is a $100 million industry we cannot afford to lose…

    It is now like crop money..if you get my drift


  7. @St.george’s

    that would call for a comprehensive, bold, balls in hand gutsy policy direction that provides immediate incentives at the bottom for small household RE investments, while shaking and reorienting the business climate and legislation at the top to allow for greater overall provision, infrastructure and access in 3-5 years. When the top gets in place and meets the bottom that has been acclimatised we are then ready to go full steam ahead as a country and reap the general tangible and others savings across the board in all sectors and at all levels.

    But as i started, it calls for vision, balls and boldness rather than talk, policy documents, draft proposal and 10 page legalese for ROI.

    just my view with limited knowledge.


    • Usually BU holds Senator McClean in high regard but her explanation tonight that the car incentive given in the budget will help car rental companies switch out old parts of the fleet doesn’t wash. In a downturn we have to find the wriggle room somehow to create a competitive edge to position for the rebound. The surgery must be deep because of the time constraints.


  8. with respect to forex, i observe that the governor of the central bank attributes what little growth there was in tourism to visits from our greedy neighbour trinidad and tobago,


  9. currently individuals cam claim $10,000 a year for five years for RE investments they undertake. This is law in bim. this has essentially replaced the mutual fund allowance. but our elites do not want to make that move. A one kilowatt solar electricity system sells for $10000 in bim you can claim back five times the cost.

    Businesses can claim $25,000 a year for teh same RE investments. this is law in bim


  10. @Educator

    A 1Kilowatt system?

    Also BU recommend you read the transcript of Senator Marville’s contribution in the Senate yesterday. There is the financial which BU believes stops short and then there is the PR and education which is a must to kick start desired behaviours.


  11. This blog is about generating and protecting our forex. Those of you so keen on RE should realise that each unit is imported. It is therefore imperative that the calculation is made which shows even medium term savings in imported fuel costs. Frankly I think that it is marginal at best but would like to be proven wrong. If we are to really go forward with RE, then we must offer incentives for the production of solar panels in Barbados, to reduce the forex component. Otherwise, RE is more about “green” than it is about saving forex.


  12. @David
    Accepted, but unlike solar water heaters, the RE electrical set-up will require component replacement more often, especially as the panels become more efficient. Don’t get me wrong, I’m all for it, but I would like to see us attract some production of these items to Barbados.


  13. @Peltdownman

    Agreed!

    Senator Boyce whose ministry is responsible for enabling this new industry stated in the Senate yesterday that his ministry estimates this to be a 1 billion dollar industry. We shall see.


  14. @David
    New industries need “forward planning” including restructuring some of the education and manufacturing systems to feed and supply it. Conversations (not cussings) with the private sector are to be key as well. I’m not sure if Messrs Boyce and Sinckler have factored in all the extenuating factors needed to genuinely create a new sustainable industry. Everything they’ve said so far has been strictly “incentive” based rather than capacity and infrastructural building. Government also has to lead by example.


  15. Where there is no vision, you will find the DLP.
    We need confidence, serious leadership and a clear path of economic growth.
    The BLP seems to be able to inspire the people that they can do it.


  16. @2Dbone

    Distilling your comment and ask you to comment on the issue of RE: this is the first government post-Independence to attempt to chip away at cost of production of which energy is a key driver.


  17. “It is unfortunate that when some of us try to engage in a constructive debate about the economy, motivated only by love of country, others trivialize the attempt because they are blinded by party colours.”

    Well said.

    And all the while the damn ship is sinking.

    PDC


  18. It is amazing to listen to Bajans.

    We import almost all of our food, drugs etc.

    We import almost all of our fuel needs.

    We depend on the fickle industries of tourism and International Business which are ‘erringly’ affected global economic conditions yet we get the question posed to the talk show host today:

    What if the economic conditions remain protracted?


  19. David you are part of a valiant venture to promote national discussion. Unfortunately, the elites in Bim have decided that a change of government is their preferred option as a means of delaying or avoiding dealing with the issues the country has to deal with. Goodluck having a serious discussion with this opinionated, self righteous and surprisingly uninformed lot. The economic world for barbados changed fundamentally as a result of the three proged global economic crisis. 1. High food prices. 2. high oil prices (a $75 oil price is now considered low, when it averaged $40 during the 1994 to 2006 period) and the prolonged recession and weak recovery in the western world. Our elites have not yet accepted that, and an inexperienced administration cannot withstand the force of that elite.

    The government, like any government is far from perfect. The problem in bim is not the government but the elites that are locked into conspicuous consumption and their various preferred government entitlement programmes.


  20. @Ellis Chase

    Perhaps it would be comforting if the economists speaking from the Hill formed a blend of experience and the enthusiastic.

    What keeps echoing is the economic decline experienced by Barbados post 911 to the economy. Is there a learning we missed?


  21. There is a clear and present need for a new model of national development for Barbados. This is something that the PDC has been advocating for years. And we have outlined quite carefully in many places and many times before how the PDC thinks the country must proceed in doing so.

    PDC


  22. @ Educator

    “currently individuals cam claim $10,000 a year for five years for RE investments they undertake. This is law in bim. this has essentially replaced the mutual fund allowance. but our elites do not want to make that move. A one kilowatt solar electricity system sells for $10000 in bim you can claim back five times the cost. Businesses can claim $25,000 a year for teh same RE investments. this is law in bim.”

    So rather than wait on people to buy and claim back 5 times the amount spent, shouldn’t government lead by buying and installing for the poor and indigent? Benefits: social, political and economic.


  23. The Government of Barbados is being advised by the two best economists in Barbados including the Governor of the Central Bank Dr. DeLisle Worrell and Dr.Frank Alleyne. When these gentlemen speak you hear the practical economics that is being used to keep Barbados from going under in this the worst economic downturn the world EVER experience.

    When you hear economists like Troy Lorde from UWI he songs like a protégé of Owen Arthur and Clyde Mascoll combined. He seems not to understand what he wants to say but makes the point that you must have a fine balance to get the economy out of trouble but goes on to say that this government has led it into stagnation by its policies of removing the spending power to reduce a drain on the foreign exchange.

    So Mr. Lorde let them spend, spend, spend and then there is no foreign exchange and then you say that the government was irresponsible


  24. @ David:

    Do you what elements of assets makeup our foreign reserves?
    The Governor says we have about $1.6 billion to cover 15 or so weeks of forex spend. My figures might not be the Guv’s exact figures but might be in the same ball park.

    Do you know if these reserves are made up of US treasury paper, gold bullion, CD’s in overseas and regional banks and financial institutions, foreign fixed assets?

    It would be good to know the profile and liquidity of our foreign reserves.


    • @miller

      It must be on the Central Bank website somewhere. When time allows will have a look.


  25. Since when Sir Clone became an economics adjudicator?
    Besides we interpreted the state of STAGFLATION ..6 weeks ago.
    Dr. Worrell….”Stable in turbulent economic times”..whatever that one means….Maybe the newly found adjudicator could interpret for us…..Sir Clone…..that is a real tight pants..help us…lol


  26. Onions

    As David said you are not into what you can do for your country but what the country can give you. On that note I cannot discuss with you any points on the economy.

    All I want you to do is to go to the Central Bank website and check out the bio of Dr.Delisle Worrell and you will see he is a more experience economists than Owen Arthur, Clyde Mascoll and all the other young economists at Cave Hill including Ryan Straughn and Troy Lorde who talk a lot and have not put forward a feasible idea of how they are going to cut expenditure and not slow down the economy or create higher unemployment.


  27. And since you want to play that card…….”A deputy essential.”…you remember that song by Crow Crow back in the 90’s…..sometimes when we remain deputy for long long…..things duz become eagerly……mr.interpreter….chew on dat


  28. “The Government of Barbados is being advised by the two best economists in Barbados including the Governor of the Central Bank Dr. DeLisle Worrell and Dr.Frank Alleyne.”
    Well said ! These men have more economic expertise in
    their little finger than Mascoll has in his entire career. Yet, because Mascoll promotes himself constantly, people feel that he is some guru. Stupse!

    We fool ourselves if we feel that there is some easy silver bullet magic solution that will descend on Barbados only with a change of government. Keep Dreaming.
    The BLP will fool those who allow themselves to be fooled.


  29. @! | July 12, 2012 at 10:16 PM |
    “We fool ourselves if we feel that there is some easy silver bullet magic solution that will descend on Barbados only with a change of government. Keep Dreaming.”

    I keep saying that Karma is a bitch!
    Isn’t that, “!”, how the DLP fooled the electorate in the 2008 elections?
    Check the DLP manifesto and see for yourself or is it you are so politically purblind as to feel that the electorate are such jackasses to be so easily fooled the employment of the backraising strategy by the BLP would work this time around in its favour. The DLP is the party of backraising with pie in the sky promises. Remember that ‘infamous’ 1986 Richie Haynes political poker bluff: (“dem people back raise me”) that resulted in the ruination of the fiscal health of Barbados almost leading to a devaluation? Thompie tried that same tactic in 2008 but fortunately for Bim the god of economic vengeance interceded and prevented the sacrifice of the $2.8 billion foreign reserves fatted calf to a larger and longer DLP feasting.


  30. The conflicting reviews over the state of the economy will cause Barbadians to do just what the Governor said. Barbadians will start hoarding their US$ and that will drive another nail in the economy’s coffin. Is the Governor flying a kite with this talk of devaluation? Do they know something that we the public does not know?

    !, keep pulling down Clyde Mascoll. See where that gets you. You praise two men, one in his late 70’s, the other in his 80’s and they have more knowledge than anybody else. That why we are in such a mess, these two men are the ones advising Chris Sinckler, that is why he has to claim that the errors in the budget are typos!

    Woe is we!


  31. @ Prodigal
    These DLP jokers likes of ! and clone…..are fighting a losing battle….Now what silliness is this .?….Using another analogy…tell me how a ship could be STABLE in the mist of turbulent water…Unless it is a hoover craft ..and even that would be affected by the chaotic waters and wind..

    Some people should choose their statements more carefully……but Clone and friends can understand anything …..after all its being chaos now for quite a while….STABLE probably substitutes as CHAOS and vise versa……a new code language of their party.


  32. @I and Clone

    You will get no where with miller the flute, prodigal and onions. they will label both of you as politcal, but they are neutral. How ironic.

    What have them is that they were pontificating about elections since david Thompson dead and they are still here waiting for the bell to be called. Just refer them to the countries in the Euozone which, in some instances will envy Barbados astute mangagement of the econony despite the worst recessions the world has seen

    Thank God the govt, despite the economic cirsis has been able to give some relief through more take home pay. For fourteen years under the last administration, barbadians were encouraged to have exoctic taste and mauby pockets. The administration borrowed to give us false hope and spend needlessly on Kesinton Oval, they built the Coast Guard Sation, the Court, the Prison and improve the High Way using the bolt arrangment which is very expensive and consequetly they have passed on massive debts to our future generations. This govt also has to honour those commitments, as well as undertake capital works to keep the economy going, maintain employment in the public service to keep the wheels of the economy spinning.

    As I constantly say to those theorists, the govt will decide when elections will be called and the people of barbados will pronounce on its performance, so the detractors must wiat their turn which will come atleast in the next six months.


  33. the goov.of the bank is proceeding with caution looking back and trying to look ahead can be challeging as we have already see what the country has come up against now knowing all of the information the gov is wisely using the knoweldge gained to protect the country from any further negative fallout from the golbal economy . his advice to the country to stop hoarding is good for the money generated would help to pay down the debt and further steer the country into clamer waters with am faster possibilty of a lowering of the vat


  34. @David
    “As predicted whenever we try to discuss the economy this is where we find ourselves. Hopeless”

    The spokesman for the BLP (Mascoll) on the economy fancys himself as a politician and his economic pronouncements vary depending on what side of the political fence he sits.
    You then have a UWI lecturer who goes before the Chamber of Commerce pretending to be impartial, lambastes the government while not letting people know that he acts as as advisor to the leader of the opposition.
    We need analysis that can be fair and balanced. Ryan Straughn is a Mascoll protege and it seems that when he is on the radio with Mascoll he is quite willing to defer and concur rather than critique both sides proposals.

    There is a need for a modern day Wendell McClean but many of the economic prognosticators appear to either have been “included” or choose to remain silent.
    Therefore objective economic analysis quickly falls into the trenches of political internecine warfare.


  35. Many of us are wary of those economists known to be affiliated with a political party. All the more reason for the others to represent. Especially when they head organisations which are influential in shaping public opinion. Like many professionals in other disciplines they put budyism above country.


  36. The administration borrowed to give us false hope and spend needlessly on Kesinton Oval, they built the Coast Guard Sation, the Court, the Prison and improve the High Way using the bolt arrangment which is very expensive and consequetly they have passed on massive debts to our future generations.
    *************************************
    What a bowl of crap for me to find served up by a queen of blogoats.Its called Capital assets…..but then again as shown the current crop of in generates,they don’t know what that means…..Ask what have they to show for spending $5 Billion a year for the past four years……nada….oh oh ..the Sin John polyclinic to be done in Dec and a $14 Mil road sign……whaloss.


  37. @Onions

    What we want are assets which produce. Would swap the Oval any day for a Cannery or Fish Processing Plant as examples. We have to change our mindset to the need to PRODUCE.

    Where is BAFBFP when we need him.


  38. Unfortunately, we may indeed have to look at increasing ‘environmental levies’ on imported luxury goods and such as food packaging etc, to restrain foreign exhancge spending. And yes, imported foods etc are a huge drain.

    Rality is that some decision may be out of out hands, as many of us may not be able to afford imported food much longer, as such prices are set to rsie due to global demand and supply issues, such as the US corn production depletion (corn being in many processed foods).

    Some predict the rises by as much as 30%. Add import costs to that and you see the issues.

    A long road ahead, means that our project spending needs to focus on mainly revenue earning projects, whether capital or incentive based, albeit it should have been done someimte ago, when over five years ago we on these blogs indicated the issues to come and spending on non revenue earning captial projects was unsuitable (David will have the records).

    Nevertheless, we are here now and at this stage, restriction on foreign spending is a must.

    The obvious target is luxury imports and prcoessed food imports.

    As for revenue earners, that can only be a collaboration between local business and government, between market assessment, production incentives and marketing.


  39. What is this harping, harpin all de time about Mascoll the DEMS dismissed Mascoll who was obviously their hopeful economic master and who their former king of the political realm had used to better the chances of the DLP at regaining government. As soon as signs appeared on the horizon , Mascoll was taken down.
    The problem seems to be that DEMS cannot get over the fact that they threw out their economic masterpiece and now they cannot get over their loss, Thompie first and mascoll always. How come Hammie La left and was taken back with open arms ackee tree or no ackee tree no big deal. But for Clidie dem ripping he apart all de time.

    When you see boys pelting up in a tree something got to be in it. Boys don’t pelt at leaves dey got to be fruits or a bird in de tree. In other words ” something of value”.


  40. @ David
    What we want are assets which produce. Would swap the Oval any day for a Cannery or Fish Processing Plant as examples. We have to change our mindset to the need to PRODUCE.
    ***********************************
    Confucius say…..actions speak louder than words..
    For the last 4 12 years DLP had the ball in hand…..what did they find priority to bowl up.?….Paaaaarrrrrrrrtttttttttttttttttttttiiiiiieeeeeees …..not going there today….but…..spendthrifts..they spend like a whore in Miami with a stolen credit card……now you that brazen to criticize us ? Man what ya saying…….we open abettors,new fish markets….PRODUCE.?…there was even COW cannery..which we saw wisdom in not wasting money on…..so BOO David bare boo !


  41. Mascoll makes himself a target saying that he is a spokesman for the opposition party and writing weekly in the newspaper and on the radio call in programmes.

    Mascoll is the one doing the attacking and for the record, he succumbed to politics of inclusion because he is basically a political wimp who because he “got out” wanted to take up his bat and go home but the game went on with out him.He does not know any more economics than anyone else in Barbados but his constant self promotion will fool the gullible yardfowl that he does. He is an intellectual impostor who has zero name and academic recognition beyond this 166 square miles.
    Two years as junior minister of finance and his legacy was 2 million dollars of our precious money thrown away down a Hardwood hole, never to be seen again.

    Regarding the unscrupulous statement by another blogger,”As soon as signs appeared on the horizon , Mascoll was taken down.”
    REPLACE the word MASCOLL with MIA and then continue.
    Hypocrite!

    The BLP will fool those who allow themselves to be fooled.


  42. @Onions

    After all the generalities the question some of us will ask is where is the measure of the output from such producing entities? We all know the BLP built out the economy of Barbados on services, period.

    Your politically washed statements will NOT go unchallenged sir.


  43. @ ! | July 13, 2012 at 6:02 AM |

    You seem to be well versed on economic matters and view Mascoll as a political lackey so any pronouncements from him should be taken with a dose of salts.
    You also seem to rate Dr. Frank Alleyne- who is a known DLP sympathizer and possibly party man- as fair and objective.
    So explain to the BU family the position taken by Alleyne on the foreign reserves. He claims that any significant additional spend in the local economy would immediately translate into severe pressures on the foreign reserves that can threaten the stability of the currency peg i.e. trigger a devaluation. The question to you is why did the MoF give income tax reductions knowing full well these would result in additional spend in the economy?
    Have the fiscal and monetary conditions that gave rise to the tax impositions changed that significantly as to grant these concessions at time when the foreign reserves are lower and under greater pressure than when the tax burdens on workers were first imposed?
    The economic reasoning coming from Dr. Alleyne befuddles me. On the one hand he supports granting the tax concessions but on the other hand he argues that any pressures on the foreign reserves from additional spend in the local economy would have serious ramifications for the country maintaining its foreign currency parity.

    Please explain to us this economic paradox and dilemma.


  44. Up to a few minutes ago , i.e my last sane recollection Barbados was a democracy. It seems that something has changed. When and why all de aggression….. clic co


  45. I see I have the same problem as Moses when he led the people out of Egypt…..first you ask for ‘PRODUCE’: producing example….that I provided..now you want me give….”the measure of output”….man get real do….next you will be comparing that with Timbucktoo…Stop moving the goal post David ..do….now one of your more favorite pass times.

    By the way we build Polyclinics and 4 post offices…they all produce social benefits too…..you want me “measure the output” there too ?

    Face it David..the DLP will have a problem measuring up.


  46. @Scrupie

    It is the silly season.

    @Miller

    It is an interesting discussion. It seems the government don’t want to open the gate but recognise a guarded opening is required. It is reminiscent of the BLP’s plan pre-global crisis when the plan was to liberalize our forex policy.

    How do you feel about Dr. Alleynes position that by not protecting the forex the confidence by merchants in our burgeoning distributive sector disappears generating an overnight demand on forex i.e the current practice of importers availing themselves of 90-day credit facility goes through the window.


  47. @ David
    In the context of the discussion surely you understand what ‘produce’ means? Check Crusoe’s last comment.
    *******************************
    At the DLP lampoons got to offer is criticism ….(can’t even win an argument on horses without getting hot under the collar like Amused)…..they criticize everything..like Pointless…..Do you know why ? It is because when you have NOTHING to offer…rather than wimp off like a stray dog…they try biting someone, any one (like ac)..even their own (crusoe) to spread their rabies……i.e unable to be good at anything and the plague of blunderisms…..lol


  48. @ David
    Production can’t be conducted in isolation. Infrastructure must be in place to assist whether high speed internet connectivity (wifi included), proper roads, seaports, etc, etc. Isn’t sports part of our development plan?

    Doesn’t cricket deserve a proper home? Ten twenty20 contracts for Bajans
    are worth what in FOREX? Jones needs to build the long overdue football centre so we can aim for 10 professional footballers too.

    The BLP built on what was then a competitive advantage (had the current government not fallen asleep at the wheel that advantage would still be in place), and it is silly to now come and condemn such an approach since to this day not a fella can advance an alternative. RE? Can we build PV panels to compete with the international companies that are way ahead of us?

    I asked why in those three consecutive years 2004 to 2006 when the reserves were lower than they are at present didn’t the B’dos dollar face devaluation or the economy collapsed?


  49. @ David | July 13, 2012 at 8:35 AM |
    Any lack of confidence in the state and management of our country’s foreign reserves could trigger a run by the importing business class and hasten moves by foreign owned entities to repatriate profits, management fees and other liquid assets (cash holdings).
    It’s coincidentally interesting that the 90 day credit window is approximately equivalent to the 15 working weeks cover of foreign reserves. One hopes that this situation is mere coincidental and not indicative of any type of speculative “kiting” or creative accounting.
    We have to keep a very close watch on this situation since the amount of foreign money currently flowing into the foreign reserves tank is much less than that leaving though ‘imports’ outlet. Any sudden rush to put additional pressures through ‘non-imports’ applications on the leaky tank could spell serious trouble in our monetary system.

    It is therefore absolutely essential that any announcements emanating from CBB and the political administration must be above board, geared to maintain confidence and not seen as political propaganda to keep a particular administration in power. The governor therefore has to be exceedingly wary how he comes across to intelligent people.
    I still am at a loss to synthesize or filter the meaning of that statement that the level of foreign reserves recently measured is the same as that prevailing at the end of December 2008. If in his opinion the level of foreign reserves is adequate for the country’s requirements and sufficient to protect its peg then he must not make statements that could lead to misinterpretation and giving rise to rumour mongering about hoarding of foreign currency. Poor people cannot hoard what they don’t have access to.
    The DLP mouthpiece on economic affairs must also be careful when he speaks positively on the fiscal strategies of this administration while at the same time warning us about the deleterious effects on the foreign reserves resulting from any increases in local spending.


  50. The DLP has shamed Barbados with what they failed to produce for its people.We were once the pride of the Caribbean. Now we are laughed at and spurned upon.THANKS DLP…..thanks ac…..we have a lot to thank you lot for.


  51. A future PDC Government shall make sure that all exchange rate parities with the Barbados dollar are abolished in this country.

    All persons, businesses and other entities importing and exporting goods and services into and from Barbados respectively will have to trade in the currencies that the particular importers and exporters have so agreed to in the particular contracts.

    PDC


  52. Based on our own research, there is no more than US $200 million in foreign exchange in this country at this stage.

    Therefore, references to some belief that Barbados has BDS $ 1.4 billion in foreign reserves are totally unfounded and misdirecte

    Recent research done by us shows that at this stage in Barbados there is no more than US $ 200 million in foreign exchange in Barbados.

    References by some people to some idea that there is BDS 1.4 billion in foreign exchange reserves are therefore unfounded and misdirected.

    There is not that magnitude of foreign reserves that Barbados has now.

    What foolishness!!

    And to think that some people believe in that nonsense as well.

    PDC


  53. Man PDC man
    How you know it is only $2oo Mil ?….Unless you is FLY….look the next time you fly in the vault….tekk out $1 Mil fa Onions and Bushie hear


  54. In this environment, The Minister of Finance can give income tax reductions but it is important to couple this with expenditure restraint or revenue gain.

    The MOF financed a requirement for each of the departments to have an adiitional 2% budgetary cut and incentivized areas like alternative energy and food production where foreign exchange savings can be realised.
    The BLP will obvious tell people what they want to hear- people should be intelligent enough to reason.
    The budget reply by Ms. Mottley was extremely irresponsible – promising everything – cut taxes, increase spending- in this environment?
    If the government had presented the “blatant electioneering reckless proposals” that Mottley outlined, Barbados would have been downgraded by the ratings agencies before the desk thumping was finished at the end of the speech.
    Sinckler was responsible and visionary.


  55. @ The People’s Democratic Congress | July 13, 2012 at 10:53 PM |
    “Based on our own research, there is no more than US $200 million in foreign exchange in this country at this stage.”

    You need to expand on this assertion if you don’t want to be labeled “Alarmist”.
    How is the US$200 mill made up and where is it sitting? In the local banks foreign accounts or is it invested by the CBB in short-term paper with the Federal Reserve and US Treasury?

    What other book-keeping items would account for the differential between what the governor of the CBB is reporting and your claim of US$ 200 mill?


  56. The Governor of the Central Bank of Barbados recently stated in the review of the half year performance of the Barbados political economy and else, that there was a $ 63 million decline in foreign reserves for that period over the corresponding one.

    He also went on to state that imports are paid for from out of what foreign currency comes into the country.

    Now, imports are in the region of 3 and a half billion Barbados dollars plus yearly.

    Exports are in the region of 2 and a half billion Barbados dollar plus yearly.

    What this tells so many Barbadians is that Barbados has a serious current account deficit on the Balance of Payments yearly.

    Nevertheless, what the Governor has really been suggesting is that this deficit in the current account of the Balance of Payments will still be closed out of foreign capital inflows into Barbados (this is an accounting truism).

    What is also clear from the Governor statements (represented above) is that there has also been a decline in foreign capital inflows because within the first half of the year, the government had to DIP into the foreign reserves this time around to pay for imports and other things.

    Well, as it stands right now, if the Barbados government is paying for imports and else things out of foreign currency coming into the country, it must mean that when one reconverts the values the Central Bank gives for imports from Barbados dollars to US dollars (vis-a-vis removing transaction costs and taxation costs (to income, payments, transfers) which have falsely inflated the import figure (Barbados dollars) in the first place), it must mean that by doing the necessary statistical calculations and synthesizations there must be fewer than US $ 200 million in foreign reserves in Barbados at this stage.

    What is clear too is that these insensate DLP and BLP Governments and their so-called economist supporters have over the years been terribly misleading the public on the amount in foreign reserves that Barbados really has in store.

    Both the DLP and BLP must go.

    PDC


  57. I could not beleive my eyes when the BLP mouthpiece Peter Simmons actually had the audacity to complain about CBC covering government activities and MPS while not being man enough to admit that the Nation newspaper has boycotted anyone from the DLP writing a column in the Nationnewspaper.

    The Nation newspaper has employed the tactic of using BLP spokesmen like Albert Brandford, Peter Simmons, Ezra Alleyne, Harry Russell, Clyde Mascott and Pat Hoyos to savage the DLP every week for the last 4 years while refusing to allow anyone from the DLP to write in the Nation.
    Therefore , if you are a Nation reader you get commentary that is consistently skewed to the opposition. Obviously for the BLP yardfowls like Peter Simmons, that is just fine.


  58. The Nation newspaper is so predictably the BLP public relations machine that everytime the BLP opposition leader speaks at a Sunday meeting , a call is made to the Nation newsroom and the following day his comments are placed in a prominent position in the Monday paper.

    Watch this trend carefully – either the front page, back page or page 3 (the first page you see when you open the paper).It happens everytime like clockwork.
    The BLP held a politically orchestrated event before their women’s league on Sunday, July 15 about the economy – look and see the prominent and extensive coverage which is given by the Nation newspaper of this event.
    You will clearly see how closely the BLP leadership and the Nation newspaper editors collaborate – almost as if they have the same mission.
    Journalism is Barbados has gone to the dogs and the oppostion can do or say anything for votes knowing that the biggest newspaper in the country has pledged its allegiance to a political party first and the country second.


  59. @David,

    Well, so much IS rigged. International politics and finance is NOT above Board. Recent events in finance include the Barclays fine, JP Morgan trading losses of $4Billion, which were apparently blamed on a breakdown in controls (even though their quarterly earnings have still been VERY profitable and a US brokerage house has gone bankrupt, allegedly with fraud.

    The ‘financial’ crisis in institutions has not gone away, because it is structural, made for manipulation and as long as profits generate CEO bonuses, do you really expect any change?

    The smoke and mirrors are endless, on big convoluted game. I reiterate, Libya and Iraq were casualties of the ‘game’, being the oil industry trump cards.

    Now that the trump cards were played, what have we left? The obvious answer for Barbados, keeps going back to self reliance and food independence, that which some claimed could not be done, but which can be done.

    The regeneration of backyard butchers and cottage industry is necessary, because the centralisation fo such facilities only suits the ‘big boys’ and large corporations which kill small business.

    You can have both, but the option should be there. We should not adopt regulations because it sounds like what would be done overseas, our regulations need to allow local small business to prosper, whether the backyard butcher with such a license or the agriculture co-op or the small hotel.

    What measures can be done to create a resurgence for the small man?

    As last week’s firings show, the distribution sector is fickle and reliant on the decisions of a few overseas.

    Local business, generating real local income, not just the marginal profis of imported goods, is where we start.

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