Reduce EC Dollar or adopt US Currency – Agency advises

ST JOHN’S, Antigua – An international investment-rating agency has suggested that Caribbean territories should devalue the Eastern Caribbean currency or adopt the US dollar in an effort to address what it deems to be a “debt crisis” in the region. In a recently published report, Moody’s Investor Services said currency devaluation and the dissolution of the Eastern Caribbean Currency Union (ECCU), while unlikely, could enhance the region’s competitiveness. “We do not see policymakers voluntarily choosing these options because they would sacrifice price stability (Caribbean countries rely heavily on food and fuel imports) and risk political upheaval,” the report read.