Balance of payment crisis in 2022

THE EDITOR: Our dwindling forex reserves, our rising debt, our fall in exports have us heading for a balance of payment crisis in 2022.

We must manage our borrowings, negative listing on all luxury goods and the Central Bank will have to reintroduce the ECO to obtain forex.

As a result of forex control by the banks, importers now have to wait three months to get US dollars in periodical quotas. For example, if one requests US$50,000, the bank would release US$10,000 in tranches.

As result of covid19 most people are accessing US dollars from their credit cards, importers as well as online shoppers. However, while we have to pay the supplier in US dollars, we are also faced with prices doubling when we pick up our packages at the courier facilities. And then there is the seven per cent OPT tax when you use your credit card. All this is leading to an increase in the cost of living.

In the interim we keep getting fake news that all is well, but the mid-year budget review will show more borrowings.

If we don't make a concerted effort to control imports and increase exports, we run the risk of returning to the IMF.

GORDON LAUGHLIN

via e-mail