**Breaking News: Former Barbados Central Bank Governor Calls for Caribbean Region to Adopt US Dollar, Phases Out “Worthless” Local Currencies**
In a bold and controversial statement, the former Governor of the Central Bank of Barbados, Dr. DeLisle Worrell, has called on Caribbean nations to abandon their local currencies and adopt the US dollar as their primary currency. Dr. Worrell, who served as Governor from 2009 to 2017, argues that regional currencies have become “worthless” due to persistent devaluation and inflation, and that the Caribbean economy would be better served by fully integrating the US dollar into their monetary systems.
The remarks have sparked a heated debate across the region, with economists, policymakers, and citizens weighing in on the proposal. While some view the idea as a solution to economic instability, others fear it could have negative consequences for local sovereignty and the ability to control monetary policy.
### “Worthless” Local Currencies
In his statement, Dr. Worrell lambasted the current state of many Caribbean currencies, pointing to the continuous depreciation of regional currencies against the US dollar. He highlighted that currencies like the Barbadian dollar, the Jamaican dollar, and the Trinidad and Tobago dollar have seen significant declines in value over the past decades, causing widespread inflation, decreased purchasing power, and economic hardship for many citizens.
“The fact is, the value of our local currencies has been eroded over time, and they are no longer serving the purpose they were intended to. In many cases, the cost of living has skyrocketed, while wages have stagnated, leaving people struggling to make ends meet. We can no longer afford to pretend that these currencies have any real value,” Dr. Worrell stated.
### The Case for the US Dollar
Dr. Worrell’s argument for adopting the US dollar is rooted in the belief that it would bring stability to the region’s economies, reduce inflationary pressures, and attract more foreign investment. The US dollar, as the world’s dominant reserve currency, is seen as a symbol of economic stability and global trust, and many Caribbean nations already have informal dollarization or pegged exchange rates to the US dollar.
“By adopting the US dollar, we would eliminate the risk of currency devaluation, which has been a persistent issue in many Caribbean countries. The US dollar is stable, widely accepted, and respected globally. It would increase investor confidence and potentially lower borrowing costs for governments,” Dr. Worrell explained.
In his remarks, Dr. Worrell also pointed to the example of countries like Ecuador and El Salvador, which have adopted the US dollar as their official currency and have seen some degree of economic stabilization as a result. He believes that such a move would create a more unified and prosperous Caribbean economy.
### Regional Response
Dr. Worrell’s call for adopting the US dollar has been met with mixed reactions throughout the Caribbean.
**Supporters of the Proposal:**
Some economists and business leaders in the region have voiced support for the idea, pointing out that the Caribbean has long struggled with high inflation, fluctuating exchange rates, and economic volatility. Many believe that adopting the US dollar could help mitigate these challenges.
In an interview with Caribbean Business News, Dr. Nigel Clarke, Jamaica’s Minister of Finance and the Public Service, expressed cautious interest in the idea, stating, “While there are benefits to greater economic integration and stability through the US dollar, any transition would need to be carefully managed and fully aligned with the region’s economic goals.”
**Opponents of the Proposal:**
However, many government officials and economists have strongly opposed Dr. Worrell’s suggestion, arguing that such a move would undermine the region’s economic sovereignty and could have unintended consequences for local economies.
Trinidad and Tobago’s Finance Minister, Colm Imbert, was quick to dismiss the idea. “The adoption of the US dollar would mean the loss of our ability to control monetary policy, including adjusting interest rates and managing inflation. We would be at the mercy of the Federal Reserve’s decisions, which are made with no consideration for the unique needs of the Caribbean region. We must not trade away our sovereignty.”
Additionally, some critics argue that full dollarization would disproportionately benefit wealthier nations and multinational corporations while leaving local businesses and citizens more vulnerable to external economic forces. There are also concerns about the potential for job losses and economic inequality if the Caribbean becomes too reliant on the US dollar.
### Potential Benefits and Risks
While Dr. Worrell’s proposal has sparked debate, it raises important questions about the future of the Caribbean’s economic landscape.
**Benefits:**
– **Stability and Inflation Control:** Dollarization could provide much-needed economic stability for countries grappling with high inflation and fluctuating exchange rates.
– **Attraction of Investment:** A stable currency could attract more foreign investment, which could spur economic growth and development in the region.
– **Lower Borrowing Costs:** Caribbean governments and businesses could benefit from lower interest rates on loans, as the US dollar is seen as a safer, more stable currency in global markets.
**Risks:**
– **Loss of Monetary Policy Control:** Dollarization would mean that the region’s central banks would no longer be able to adjust interest rates or control the money supply, potentially limiting the ability to respond to regional economic crises.
– **Economic Dependency on the US:** Relying entirely on the US dollar would make Caribbean economies more vulnerable to economic fluctuations and policy decisions made by the US Federal Reserve.
– **Disparity in Economic Conditions:** The Caribbean region’s economic needs and circumstances differ significantly from those of the United States, and dollarization may not address the unique challenges faced by smaller, developing economies.
### Conclusion: A Radical Solution to a Growing Problem
Dr. Worrell’s call to abandon local currencies in favor of the US dollar is a provocative one, offering both potential benefits and significant risks. While the idea may offer a path to greater economic stability and reduced inflation, it also raises concerns about sovereignty, economic independence, and the long-term sustainability of such a move.
The future of the Caribbean economy is undoubtedly tied to the success of its monetary policies, and whether or not the region embraces full dollarization remains to be seen. What is clear, however, is that the debate over the region’s financial future is far from over, and Dr. Worrell’s remarks are sure to continue to stir conversation and scrutiny across the Caribbean for years to come.
