Looking
for a unified Caribbean currency in 2006
By
Raymond
Forrest
Jamaica
Gleaner
Kingston
Petroleumworld.com 02 12 06
THE CSM was officially signed off last week, with the larger
six Caribbean territories coming immediately aboard and the
remaining ones making pledges to join in six months.
While
I believe that regional development is the only way to go forward,
an interesting issue that will have to be settled soon is to
develop a timeline towards the establishment of a Caribbean
currency, as it is obvious that this has to happen if the region
is to see itself as a seamless region of goods, services and
opportunities.
The
issue will become even more pressing when the Cricket World
Cup comes to our shores in March 2007 and we face the prospects
of visitors having to use several different currencies as they
travel around the islands and Guyana. There are now several
national currencies being used in the various CSME- destined
territories: the Jamaican dollar, the Trinidadian dollar, the
Barbadian dollar, the Guyanese dollar, the Eastern Caribbean
dollar, and even more currencies.
CSME
CURRENCY
Does
the cricket lover, who decides to move between islands, carry
U.S. dollars or will a special CSME currency be created for
that purpose, with all its attendant difficulties in doing so?
What would be the rate that is used in that case, given the
wide differences in regional exchange rates? Would the Eastern
Caribbean Central Bank be given the central role in this currency
operation since it has the most experience in operating a multi-country-use
currency?
The
onus is, therefore, on the region to ensure that such issues
are sorted out well ahead of February so that all visitors can
enjoy themselves, to be able to travel hassle-free and not have
to worry about the inconvenience of changing currencies according
to the territory they happen to be visiting. What I would not
like to see is the U.S. dollar become the designated currency
of choice, as is likely to be the case in the absence of the
steps I have indicated, since this would send a powerful message
about the CSME financial unity.
Jamaica
Gleaner
February 10, 2006
