The Canadian Press - ONLINE EDITION

Barbados says it is determined to maintain local currency's fixed exchange rate with US dollar

  • Print

BRIDGETOWN, Barbados - Barbados' government does not support devaluing the Caribbean island's currency and says it is determined to maintain its fixed exchange rate with the U.S. dollar.

The Barbados dollar has been pegged 2-to-1 to the U.S. dollar since the 1970s. But some analysts believe the currency of the economically struggling country should be devalued.

Moody's Investors Service has downgraded the island's government bond rating by two notches from Ba3 to B3, citing "anemic economic growth" and "limited prospects for improvement."

The Barbados Ministry of Finance conceded that "a number of experts, including some in the ratings agencies," believe devaluation is needed. But in a Saturday statement, the ministry said it is committed to the current exchange rate and "and will do what needs to be done to protect" the Barbados dollar.

The government says it is seeing signs of renewed economic growth. It says the rating agency's downgrade decision ignored cuts in government spending and improvements in external accounts.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

O'Shea says the team is going to stick to the plan after first loss

View more like this

Photo Store Gallery

  • JOE BRYKSA/WINNIPEG FREE PRESS Local-(Standup photo)- A wood duck swims through the water with fall refections in Kildonan Park Thursday afternoon.
  • Marc Gallant / Winnipeg Free Press. Local- Deer in Canola field near Elma, Manitoba. 060706.

View More Gallery Photos

Poll

Which of Manitoba's new landlord-tenant rules are you looking forward to most?

View Results

View Related Story

Ads by Google