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Central Bank Warns Of Dire Position With Reserves
Thu, July 28, 2016
And this just in, we've received a copy of that letter which the Denys Barrow says Central Bank Governor Glenford Ysaguirre wrote to Joseph Waight, the Financial Secretary. He does warn that Belize's economy cannot handle the strain of diverting anymore of the Central Bank's US Currency Reserves.

He notes in his 3 page letter that quote, "…It is necessary to advise all concerned that it would be destructive for the economy of Belize if the Central Bank were to even attempt to facilitate any such requests to facilitate for an additional amount of foreign currency, given the currently level of official foreign reserves and other external demands facing the bank…the Central Bank…must…exercise careful management of the international reserves by balancing the foreign exchange needs of the Government against those of the domestic banking system, and the wider private sector. " End Quote.

The Central Bank Governor notes that the country's present demand for foreign reserves is at around US 193 million dollars. To accommodate the Ashcroft Alliance Demand would balloon that demand to US 263 million dollars. The Governor ends his letter by stating that given the clear outline of the Belize's Foreign Reserves needs, the Central Bank would be unable to provide the additional US 70 million dollars that the Dunkeld and Trust company is now demanding.

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