0

Turnquest Dismisses Devaluation Threat

Deputy Prime Minister Peter Turnquest.

Deputy Prime Minister Peter Turnquest.

By EARYEL BOWLEG

ebowleg@tribunemedia.net

FINANCE Minister Peter Turnquest has dismissed reports of the government running out of money as false while stressing the Bahamian dollar is not facing a devaluation threat.

Yesterday, a statement from Mr Turnquest insisted measures are being taken to ensure the finances of the country and preserve the integrity of the Bahamian dollar.

The statement read: “Our economy has not survived and thrived for so long because of good fortune. As a country, we have historically taken a very prudent approach to fiscal and monetary policy to protect ourselves in situations like the emergency we face today.

“The country’s foreign reserves are managed by the capable hands of the Bahamian professionals at the Central Bank of the Bahamas. The Central Bank has an exemplary record that should instill confidence in every Bahamian. Since the COVID-19 crisis, the Central Bank has taken several preemptive steps to shore up our reserves, and they will continue to take necessary action as needed.

“I echo the Central Bank’s statement today, indicating that monetary policies have already taken into consideration vital local needs, and any reports of devaluation threats are entirely misleading and without merit.

“The government will continue to take the necessary steps to stabilise the economy and support the Central Bank in its mandate to preserve the integrity of the Bahamian dollar,” Mr Turnquest said.

This comes after The Punch reported on its front page yesterday that “the government was set to run out” of cash by November and “spark a devaluation of the B$” due to the COVID-19 pandemic and associated economic fallout.

Yesterday, Central Bank Governor John Rolle also hit out at the report on social media.

In one of two tweets, he wrote: “Contrary to the misleading report by @bahamaspunch 50 percent of our demand liabilities determine the legal floor on (external) reserves. These move in close sync with reserves (because) they fund the balances. The B$ is not facing devaluation threats. Policies already anticipate vital local needs.”

The government announced on Sunday it has applied for a $252m International Monetary Fund (IMF) loan. Mr Turnquest explained the request was not a sign of the country dealing with the “worst case scenario” post COVID-19 but The Bahamas merely “taking advantage of attractive borrowing facilities”.

Comments

birdiestrachan 1 month, 2 weeks ago

Did the FNM Government say when they came into power the Bahamian dollar would be devalued because of what the PLP had done or was it their supports spreading the story?

0

TalRussell 1 month, 2 weeks ago

Weird the colony's finance minister has now thrown his playbook out the window as to the government's deteriorating revenue streams. That the colony's fast disappearing revenue streams demand there be no new borrowing spree that is exactly what KP promised just this past Wednesday day of March 18, 2020. Comrade KP said, simply put we have no plans to request additional borrowings as we are diligently managing the country’s done stretched debt levels. Nod once for yeah, Twice for no?

0

The_Oracle 1 month, 2 weeks ago

KPT has probably been overruled by those in Cabinet with no clue as to the end result. If you find yourself in a hole, it is prudent to at once stop digging. every company that ever went bankrupt had an accountant in the corner warning of what was coming.........

0

DDK 1 month, 2 weeks ago

NO! NO! NO! Who gave you the ok to borrow more money KP?? Can you not simply admit you are lazy addicts and check into the nearest borrowing rehabilitation facility, anonymous or otherwise? Your Party will NEVER get my vote with you and your PM at the helm.

0

DDK 1 month, 2 weeks ago

We should take a collective page out of the Swiss DEMOCRACY!

0

Bigrocks 1 month, 2 weeks ago

Just another dreamer. Or he has a big monopoly game in the closet!

0

Sign in to comment