Former Central Bank governor Dr Delisle Worrell has warned Caribbean governments that hoarding foreign currency would damage their economies, arguing that such reserves ultimately deliver value only when spent on imports.

In his Economic Letter for July, entitled Foreign Earnings Benefit the Economy Through Imports, Dr Worrell cautioned that any such act would lead to economic failure:

“Hoarding of foreign currency brings no benefit to the local economy; any attempt to put these funds to use, will trigger a demand for imports, directly or indirectly. Whatever purpose for which the hoarded funds are used, the providers of the products or services purchased, will eventually have to use the foreign exchange to purchase the imports they need to continue their operations.