June 18, 2019, 01:08:41 AM

Author Topic: Caribbean Dollar???  (Read 1109 times)

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Offline AB.Trini

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Caribbean Dollar???
« on: August 05, 2010, 08:52:31 AM »
 After a holiday back home and Barbados, I was taken back when I arrived in Barbados and realized that  the TT $$ did not have any  value of note there. Now after travelling parts of Europe and doing some working working stints in the poorest of nations, Kosovo, I observed that the Euro was adapted as the currency of choice.

Why would a common currency not work in the Caribbean? I realize that there are different economies of scales and that the disparities among the nations are diverse with Haiti as one extreme. But are there not just as much extreme economic diversity among the European nations?  and does the U.K still not retain its pound?

So why not a Caribbean $$?

Offline ribbit

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Re: Caribbean Dollar???
« Reply #1 on: August 05, 2010, 09:19:55 AM »
alberta, look at what happening with greece and the euro.

Offline Dutty

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Re: Caribbean Dollar???
« Reply #2 on: August 05, 2010, 09:46:09 AM »
alberta, look at what happening with greece and the euro.
nice example

The disparity of GDP's beetween all the islands will cause havoc.
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Offline AB.Trini

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Re: Caribbean Dollar???
« Reply #3 on: August 05, 2010, 10:52:45 AM »
I saw the  plight of Greece and despite  that example, why is it that countries like Kosovo, could still manage to work within that currency. Kosovo from first hand experience is what I'll consider to be third world with less of an economic base than most of the Caribbean islands. Greece is suffering an economic lapse but so do most nations at any given time.

At one time there was the Eastern Caribbean $$$ what became of that?

Offline daryn

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Re: Caribbean Dollar???
« Reply #4 on: August 05, 2010, 11:39:17 AM »
Greece is suffering an economic lapse but so do most nations at any given time.


it is correct that countries experience economic difficulties from time to time.  The thing, I think, about Greece though is now there is a sovereign nation that doesn't have all the usual monetary policy measures at its disposal to deal with the situation.  Essentially, Greece's allegiance to the Euro is restricting its ability to maneuver.

Offline JDB

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Re: Caribbean Dollar???
« Reply #5 on: August 05, 2010, 12:58:13 PM »
After a holiday back home and Barbados, I was taken back when I arrived in Barbados and realized that  the TT $$ did not have any  value of note there.


The value of the TT Dollar is what it is. Our dollar, the Bajan Dollar and the EC dollar are all pegged against the US dollar so our dollar has not lost value against theirs since the devaluation.

Our dollar is less "valuable" for practical reasons, more goods and services come from the US and more people travel to the US so US dollars do not have to be exchanged. The US dollar is basically a more universal currency so that is the currency they want to have.

To add to what daryn is saying to have a shared currency without a true shared economy without tariffs and with freedom of movement would be folly.
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Offline Deeks

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Re: Caribbean Dollar???
« Reply #6 on: August 05, 2010, 04:01:17 PM »
Corect if I am wrong. But is it not that the TT dollar is "floated" on the currency market while B'dos and some of the Eastern Carib countries propped up their currency.

Offline Jah Gol

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Re: Caribbean Dollar???
« Reply #7 on: August 05, 2010, 06:08:55 PM »
The TT$ is a managed or dirty float. The effects of the international currency market are mitigated by influence from the CBTT.

The Barbados dollar is pegged to the US.

The EC$ is managed by the ECCB which isn't actually a Central Bank but a Currency Board since it isn't a lender of last resort. If I remember correctly what that shitty lecturer say.

On the issue of a dedicated single currency, its easier said than done. With differing degrees of inflation, current account and fiscal deficits in each member state it would be very difficult to manage a single currency. The Europeans had to establish standards for member states to follow. Admittedly they don't follow it all of time.But there are penalties for not following the rules. We are along way from that point.

The same shitty lecturer also recommended that the whole Caribbean switch to US on the basis that we would be able to deal with the foreign exchange issues . It would make trade within the region easier and we would benefit from relative stability despite the disparity in economic conditions among member states.
« Last Edit: August 05, 2010, 09:15:16 PM by Jah Gol »

Offline Deeks

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Re: Caribbean Dollar???
« Reply #8 on: August 05, 2010, 08:51:51 PM »
The TT$ is a managed or dirty float. The effects of the international currency market are mitigated by influence from the CBTT.

The Barbados dollar is pegged to the US.

The EC$ is managed by the ECCB which isn't actually a Central Bank but a Currency Board since it isn't a lender of last resort. If I remember correctly what that shitty lecturer say.

On the issue of a dedicated single currency, its easier said than done. With differing degrees of inflation, current account and fiscal deficits in each member state it would be very difficult to manage a single currency. The Europeans had to establish standards for member states to follow. Admittedly they don't follow it all of time.But there are penalties for not following the rules. We are along way from that point.

The same shitty lecturer also recommended that the whole Caribbean switch to US on the basis that we would be able to deal with the foreign exchange issues problems. It would make trade within the region easier and we would benefit from relative stability despite the disparity in economic conditions among member states.

seems like a shitty good answer to me. What are the pros and cons of pegging to the US dollar or just using the US dollar. Some countries(Panama????????) use it.