Prime Minister Gaston Browne has made a strong case for the Eastern Caribbean Central Bank to adopt a ‘more progressive’ investment strategy by for example, to invest in the Eastern Caribbean Securities Exchange.
Addressing the Eastern Caribbean Currency Union last Thursday, PM Browne wants the ECCB to play a leading role in what he termed, Architects of our Development mindset.
“Sustained enhanced growth, requires us to become architects of our own development; reducing our dependency on foreign capital and expanding the domestic ownership class of the revenue generating assets in our sub-region.
“This policy shift would result in economic empowerment of our people and the retention of profits to fuel more robust growth and development; thereby increasing the individual and collective wealth of our countries and their people,” he stated.
The prime minister added that this policy shift must be supported by increased entrepreneurship, intrapreneurship, creativity and innovation.
Accordingly, this policy shift must be driven by a positive ‘can do’ mentality at all levels and to rid the region of “can’t do” rhetoric.
“For example, I am of the firm view, that the Central Bank has a role to play in catalyzing these domestic investments in revenue and foreign exchange earning assets.
“There is absolutely no compelling reason, why the Central bank cannot utilize a small portion of its reserves, say two to three percent of its reserves in US dollar denominated government securities on the ECSE; to provide a portion of the capital that would fund these revenue and foreign currency generating businesses, especially in the tourism sector.
“Let me state categorically, that the risk of investing 100 percent of all reserves in US securities, is far greater than investing two percent of reserves on the ECSE in US$ denominated OECS government securities. These could be short term US$ denominated securities; that could be consistently rolled over like the Central Bank does with its US Federal Bank securities; thereby preserving the backing ratio of the currency,” he explained.
PM Browne is urging his fellow finance ministers to ‘get bold, creative and innovative’ by taking prudent risks to accelerate growth and development of the sub-region.
