Devaluation of Barbados Dollar not under consideration – Finance Minister Sinckler

The Freundel Stuart administration in Barbados has rejected suggestions that it devalue the local currency saying it “will do what needs to be done to protect the Barbados dollar”.

The Barbados dollar is trading at US$0.50.

According to the Finance Minister, Chris Sinckler, devaluation is not even being considered by the administration as it grapples with efforts to turn around an ailing economy.

Earlier this week, the International Monetary Fund (IMF) said that the local economy continues to “face major challenges, including low growth, a very large fiscal deficit and a high debt burden”.

The country’s real gross domestic growth (GDP) is expected to decline by 0.6 percent this year, as slightly stronger tourism activity is offset by the impact of the government’s deficit reduction.

Moody’s Investment Services downgraded the island-nation’s credit ratings, however, the administration is committed to the fixed exchange regime and will do what needs to be done to protect the Barbados dollar. -(CMC)