Dear Editor,
Why is it that we are going to replace the Netherlands Antilles guilder with the Caribbean guilder and to continue the cost of maintaining a tiny currency for no purpose? Why is it that we are going to endure the complications, risks and costs associated with an economy largely using a foreign currency but having to use the “national currency” for a range of self-inflicted purposes?
Has the cost and risk to the real economy ever been measured?
The answer to my question is not that economists hold the opinion that there is value to the country in maintaining this currency. In fact there is a general consensus that there is little value. Once upon a time there might have been a different view when in a different economy to ours it might have been possible to adjust the exchange rate to make the economy more competitive in international trade. That possibility does not apply to us in any event.
The real reason for us continuing with a separate currency is because our parliament has members who have sentimental views which determine that we are better off with our own currency. Our own is better, they think, than someone else’s. Given our open economy this clearly makes no sense.
When in the near future I hope we are going to enjoy some coalitions with younger and more open minded MPs I believe it will be likely that this position will change. But then the expense will have been made and regrets will not benefit us.
Robbie Ferron
