Worrell warns against hoarding foreign currency

Former Central Bank governor Dr. Delisle Worrell has issued a stark warning to Caribbean governments, cautioning that hoarding foreign currency would inflict significant damage on their economies. He contends that the true value of foreign reserves is only realized when they are actively spent to import goods and services or to make payments.

Worrell, who previously led the Central Bank of Barbados, emphasized that accumulating foreign currency without deploying it for economic purposes is counterproductive. His argument suggests that reserves are a tool for facilitating international transactions and supporting economic activity, not merely an asset to be held passively.

The former governor's remarks, shared with Barbados Today, highlight a critical aspect of monetary policy for small island developing states that often rely heavily on imports. The underlying message is that strategic spending of foreign reserves is essential for economic dynamism and stability in the region.

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hoarding foreign currency would damage their economies, arguing that such reserves ultimately deliver value only when spent