Bridgetown.
Chariman of the Government Advisory Council On Economics Sir Frank Alleyne, has warned the Government not to gamble with the fixed exchange rate policy as it fights with the current economic recession.
Sir Frank issued the warning as he delivered the 2013 Errol Barrow Memorial Lecture at the Frank Collymore Hall last night.
The noted economist told the audience that any Barbados Givernment should be wary of tampering with the island's long lasting tag to the United States dollar, and not fellow in the footsteps of Jamaica, Guyana and Trinidad and Tobago.
"Barbados cannot afford to gamble with the fixed exchange rate policy, because of the inability to manage the adverse dynamic that is likely to be unleashed. Unlike the government Trinidad and Tobago, which adjusted the exchange parity of their dollar downwards in the mid-1980s, the Barbados Government does not have access to an assured flow of foreign exchange as is enjoyed by the government of that twin island republic", Sir Frank told the audience.
'A devaluation of the Barbados dollar in the current cirumstances is likely to set in motion a continuing slide in the exchange parity of the Barbados dollar", he warned.
Sir Frank's lecture was title:"Management Of A Small Open, Tourism-Dependent Economy In The Context Of Major Fracture In The Global Financial And Economic Architecture.
