DPM: Devaluation threat is fake news

DPM: Devaluation threat is fake news
Minister of Finance K Peter Turnquest (file photo)

NASSAU, BAHAMAS — The Bahamian dollar is not facing the threat of devaluation, according to Deputy Prime Minister K Peter Turnquest, who also branded reports that the government is running out of money as “false”.

The Ministry of Finance released an official statement today, cautioning against “fake news reports” regarding the country’s foreign reserves.

“Our economy has not survived and thrived for so long because of good fortune,” the statement read.

“As a country, we have historically taken a very prudent approach to fiscal and monetary policy to protect ourselves in situations like the emergency we face today. The country’s foreign reserves are managed by the capable hands of the Bahamian professionals at the Central Bank of the Bahamas. The Central Bank has an exemplary record that should instill confidence in every Bahamian.”

It continued: “Since the COVID-19 crisis, the Central Bank has taken several preemptive steps to shore up our reserves, and they will continue to take necessary action as needed. I echo the Central Bank’s statement today, indicating that monetary policies have already taken into consideration vital local needs, and any reports of devaluation threats are entirely misleading and without merit.

“The Government will continue to take the necessary steps to stabilize the economy and support the Central Bank in its mandate to preserve the integrity of the Bahamian dollar.”

Earlier this month, Central Bank Governor John Rolle announced that the regulator is eyeing in excess of $300 million in ‘buffers’ as it will take several take measures to conserve foreign currency.

The country’s foreign reserves are expected to be around $800 million to $1 billion at the end of the year.