Would a caribbean single currency work ?

[Greypatch]

Large european nations have the euro, can we as a region benefit from a caribbean dollar ?

[Lucian-2nr]

No.

[uncle sam]

well there is already EC and that works. The single currency should only be used by countries with a "high" GDP because it will cause inflation and the value of the dollar would drop.... Then ur back to square one and they'll have to start printing million dollar bills

[Cjruckus]

Large european nations have the euro, can we as a region benefit from a caribbean dollar ?

No.

The Euro is kept afloat by Italy France and Germany.
The 3 largest economies in Europe.

Try and apply that to the Caribbean. Jamaica is in a Financial mess because of the IMF. Trinidad is at an economic standstill, and Barbados has a stronger economy because its directly pegged to the US dollar, dependent on US development and economic growth.

Factor in that all Energy is already sold is US D, and we already commonly deal with it right now on our own with a stable economies. Why absorb a bunch of smaller countries that can't contribute so they can piggyback the 3 strongest economies? Increasing inflation here? reducing our spending power? So they could take loans off our our assets?

If you want to go down that route, have Caricom countries remove the requirement of a Passport for Inter-island travel, and create a Caricom Pass. But unless that is in place, i really dont see a benefit.

Small islanders move with USD anyway. The preferred currency of the region IMHO.

[Sierra-117]

^^^ well said, the smaller islands will benefit yes, but the stronger/stables economies (tnt) will have to do the heavy lifting. remove the borders by allowing freer travel between island should be the first step in any venture of this sort.

[Greypatch]

thanks for the input so far, would it then be fesable for the "big 3" to go that route ?

[rollingstock]

thanks for the input so far, would it then be fesable for the "big 3" to go that route ?

I really don't see that happening without either trying to undercut the other. Trying to get T&T, Barbados and Jamaica to play nice would be near impossible.

[Sierra-117]

too much racial undertones as well will undermine this from forming. That coupled with the fact that us trinis feel like we are the $hit...

[Cjruckus]

thanks for the input so far, would it then be fesable for the "big 3" to go that route ?

No. Unless Jamaica can stabilize itself I really don't see it happening. The Jamaica economy is not the best, they have been in a downward spiral ever since the IMF messed things up.

These free trade agreements have their pros and cons.. case in point, NAFTA http://en.wikipedia.org/wiki/North_Amer ... _Agreement

[RapToR]

Large european nations have the euro, can we as a region benefit from a caribbean dollar ?

No.

The Euro is kept afloat by Italy France and Germany.
The 3 largest economies in Europe.

Try and apply that to the Caribbean. Jamaica is in a Financial mess because of the IMF. Trinidad is at an economic standstill, and Barbados has a stronger economy because its directly pegged to the US dollar, dependent on US development and economic growth.

Factor in that all Energy is already sold is US D, and we already commonly deal with it right now on our own with a stable economies. Why absorb a bunch of smaller countries that can't contribute so they can piggyback the 3 strongest economies? Increasing inflation here? reducing our spending power? So they could take loans off our our assets?

If you want to go down that route, have Caricom countries remove the requirement of a Passport for Inter-island travel, and create a Caricom Pass. But unless that is in place, i really dont see a benefit.

Small islanders move with USD anyway. The preferred currency of the region IMHO.

x2

[buzz]

Why absorb a bunch of smaller countries that can't contribute so they can piggyback the 3 strongest economies? Increasing inflation here? reducing our spending power? So they could take loans off our our assets?

If you want to go down that route, have Caricom countries remove the requirement of a Passport for Inter-island travel, and create a Caricom Pass. But unless that is in place, i really dont see a benefit.

i concur

[sharkman121]

thanks for the input so far, would it then be fesable for the "big 3" to go that route ?

I really don't see that happening without either trying to undercut the other. Trying to get T&T, Barbados and Jamaica to play nice would be near impossible.

same thing happens when we try for regional integration a la CSME. Inter-island egos always get in the way.

[redmanjp]

i thought this was supposed to happen a few yrs ago with the CSME. what happened to it?

[gt4tified]

Large european nations have the euro, can we as a region benefit from a caribbean dollar ?

As a region, it is uncertain. I think it would depend to a large extent on who our trading partners are and the nature of the respective trade agreements.

For T&T I think it will not be beneficial, as we are the only island in the region with oil and natural gas, and as such, we may be towing the line more than anything.

[trinigamer]

Actually a single currency might work, if everyone adopts the US$ dollar. For another non US$ currency to work, all countries would have to pool all their reserves into one central bank and the exchange rate be determined by demand and supply for the region's goods and services.

Only problem is that countries have different levels of demand and supply, some have trade deficits some have surpluses, larger countries have more reserves and will have larger sway over policy, and some countries simply more competitive than others.

[Victory_Specification]

This is a good thread so i have to ask; would the formation of a single regional stock exchange (i.e merging the echanges from all the territories) help the situation in making a single caibbean currency beneficial?

[Habit7]

No.

The Euro is kept afloat by Italy France and Germany.
The 3 largest economies in Europe.

Try and apply that to the Caribbean. Jamaica is in a Financial mess because of the IMF. Trinidad is at an economic standstill, and Barbados has a stronger economy because its directly pegged to the US dollar, dependent on US development and economic growth.

Factor in that all Energy is already sold is US D, and we already commonly deal with it right now on our own with a stable economies. Why absorb a bunch of smaller countries that can't contribute so they can piggyback the 3 strongest economies? Increasing inflation here? reducing our spending power? So they could take loans off our our assets?

If you want to go down that route, have Caricom countries remove the requirement of a Passport for Inter-island travel, and create a Caricom Pass. But unless that is in place, i really dont see a benefit.

Small islanders move with USD anyway. The preferred currency of the region IMHO.

^^^I was going to say this but you did much better.

However the US dollar isn't in top shape right now, America is printing them like flyers while its foreign debt is growing. I actually feel sorry for the Bajan and EC dollar, when the US fall they go with it too. But I know T&T is artificially floating theirs, and cant maintain for much longer. T&T government needs do something more to revitalize our economy.

[Cjruckus]

who gonna determine the currency exchange rate? for e.g. to the US dollar?

Jesus Christ, I know its only your second post on the forum, but just read two posts before you.

[Cjruckus]

No.

The Euro is kept afloat by Italy France and Germany.
The 3 largest economies in Europe.

Try and apply that to the Caribbean. Jamaica is in a Financial mess because of the IMF. Trinidad is at an economic standstill, and Barbados has a stronger economy because its directly pegged to the US dollar, dependent on US development and economic growth.

Factor in that all Energy is already sold is US D, and we already commonly deal with it right now on our own with a stable economies. Why absorb a bunch of smaller countries that can't contribute so they can piggyback the 3 strongest economies? Increasing inflation here? reducing our spending power? So they could take loans off our our assets?

If you want to go down that route, have Caricom countries remove the requirement of a Passport for Inter-island travel, and create a Caricom Pass. But unless that is in place, i really dont see a benefit.

Small islanders move with USD anyway. The preferred currency of the region IMHO.

^^^I was going to say this but you did much better.

However the US dollar isn't in top shape right now, America is printing them like flyers while its foreign debt is growing. I actually feel sorry for the Bajan and EC dollar, when the US fall they go with it too. But I know T&T is artificially floating theirs, and cant maintain for much longer. T&T government needs do something more to revitalize our economy.

you know what the TnT government can do... Create Jobs.

Get TTRA off the ground, start moving the Government offices into their new buildings in town so they can start hiring staff. So these people can get money to invest back into the private sector.

But don't be too surprised if Dooks takes the easy route and adjusts the value of the US dollar to 10TT to U$1.

[Habit7]

you know what the TnT government can do... Create Jobs.

Get TTRA off the ground, start moving the Government offices into their new buildings in town so they can start hiring staff. So these people can get money to invest back into the private sector.

But don't be too surprised if Dooks takes the easy route and adjusts the value of the US dollar to 10TT to U$1.

In this aspect I really want to support the government, but this economy is on cruise control since last year with no major inputs. On day we are going to realise we driving into a wall and we cant find the switch.

But in term of regionalism, i think it need to take place in pockets, over time. We need to realise the EU wasn't born in a day, it was after centuries on warring amongst themselves and then realizing their true potential. Probably we need a unifying a event like a natural disaster, war, economic meltdown, etc. to bring us together.

[gt4tified]

This is a good thread so i have to ask; would the formation of a single regional stock exchange (i.e merging the echanges from all the territories) help the situation in making a single caibbean currency beneficial?

I think that would be a mandatory step in the process....individual stock exchanges (each operating differently) would be rendered useless by a single currency.

To the person asking about the US currency, a single market currency is quite different to everyone adopting the USD....which in any event is not what the single market is about.

[janfar]

If we do this then Guyana would want to join and they would be to us like Greece it to the EU...

[Redman]

Its an idea that deserves serious investigation.
But I would think that we would have the same issues as the Euro

Would respective Central Banks/political directorates be willing to cede control of the monetary base-which as in the US is a political tool.

How we deal with the existing debt of each country and going forward the responsibility of new debt-say to build the Pt Fortin Highway-falls to who??
The Euro currency is backed by which country and in what proportion?

Also the fact remains that Greece should have defaulted and reset-the bond holders would have gotten the hit-but they took the risk and the high interest rates.So Greece is hampered because the medicine it needs to take for its problems will impact Germany,France et al-so THEY are preventing it and drawing the inevitable out.
Argentina is a great example of what Greece could look like.

I personally feel that TT has nothing to gain from it.
And I agree with janfar-we eh want no crackhead in we sou sou.

A single exchange -transacted in USD as a common denominator will bring
a reduction in cost(all the exchanges have similar costs and therefore there is duplication)
Will increase liquidity-larger market and customer base
Will bring additional investors that were previously too large for the local mkts,

Im all for it


Later

[SUPAstarr]

does anything the caribbean try to do together ever work

[Habit7]

If we do this then Guyana would want to join and they would be to us like Greece it to the EU...

Actually Guyana would be very valuable. They are not the basket case everyone thinks they are (make your own jokes). But they have been getting tremendous growth over the past 7 years. They are sitting on the world's 2nd largest untapped oil reserve. And they are paying off their debts that put them in their position because of the socialist plans of former leaders. Guyana could be where Brazil was 30 years ago.

[Redman]

Good point Habit7

Later

[Habit7]

http://www.bbc.co.uk/news/business-13991135

I don't know how to embed this

[crazybalhead]

If we do this then Guyana would want to join and they would be to us like Greece it to the EU...

WHEN they find fvckin oil in Guyana later this year, I will hear allyuh Guyana bashers talk.

[Dizzy28]

If we do this then Guyana would want to join and they would be to us like Greece it to the EU...

Apart from potential for oil and gas, Guyana has;
1) Large tracts of arable land
2) Bauxite
3) Gold and diamonds
4) Huge rivers with hydroelectric potential
and
5) They would start receiving millions in carbon credits payments from Norway this year and this can continue for years to come.

Guyana would actually become the Germany of Caricom with prudent governing.

[VW_Exec]

Why absorb a bunch of smaller countries that can't contribute so they can piggyback the 3 strongest economies? Increasing inflation here? reducing our spending power? So they could take loans off our our assets?

If you want to go down that route, have Caricom countries remove the requirement of a Passport for Inter-island travel, and create a Caricom Pass. But unless that is in place, i really dont see a benefit.

i concur

A Caripass is already in train: http://caricomimpacs.org/impacs/index.p ... &Itemid=98
(Albeit, the entity is under audit/investigation)