Watcher: “Devalue our Currency!”
Beefcake: “Devaluation won’t help tourism!”
Could Barbados succeed like Singapore?
BFP readers Beefcake and Watcher squared off so well in the comment section of Another Barbados hotel folds, that we knew we had to make it a post. If the discussion continues, we’ll try to update this post…
watcher
October 14, 2011 at 2:13 pm
A lot of the high costs of Barbados comes from a currency that is far overvalued on a fixed currency basis. When the currency matter is resolved, the high costs of Barbados will be resolved. It will eventually resolve itself when the Government gets to the point of not having enough “traded currencies” coming in to pay for everything that is imported. If we can’t be competitive we wont have foreign exchange coming in. These monies will be going to other places where, for the tourist, the value for money is much greater. The expenditure level in Barbados can’t be sustained.
Beefcake
October 14, 2011 at 4:56 pm
Devaluation only helps exporters (manufacturers and raw materials).
You need to replace the Barbados dollar with the US dollar, and by extension, get rid of the Barbados Central Bank. Continue reading →