Government Information Service

by Emmanuel H. Joseph
Government Information Service

Prime Minister, Hon. Roosevelt Skerrit and Minister for Foreign Affairs, Immigration and Labour, Hon. Vince Henderson returned to the island on Thursday after participating in the third Extraordinary Meeting of Heads of State of ALBA. The one day meeting took place at the Presidential Palace in Caracas on Wednesday. The Prime Minister was accompanied by ALBA Coordinator Dr. Philbert Aaron and Senior Information Officer of the Government Information Service, Mervin Paul.

Foreign Affairs Minister, Hon. Vince Henderson, at a Press Conference on Thursday, explained the reason why the creation of a common currency among the ALBA grouping was discussed at Wednesday’s meeting.

“The reason for that unit of trade is simple. Ecuador is saying that if I have to do business with Venezuela, I must buy US dollars. Each already has their own currency being used, be it pesos or bolivars or whatever currency each member state uses locally. However, if they were to trade among themselves, in that case, Ecuador and any other member state of ALBA, they would have to first use the US dollar. That means you would have to make a conversion and then reconvert it. In the process, you could lose ten percent (10%) of the actual value of the trade. That is why the proposal came forward that, rather subjecting the countries to a loss (that loss could run into the billions) during conversion and reconversion that a common currency or common unit of trade should be utilised within all the member states and Ecuador. (Ecuador is not a member of ALBA). That unit would facilitate trade among the members.”

Contrary to reports on the local and international media, however, Minister Henderson stated that Dominica will not take part in this process

“Dominica is a member of the East Caribbean Currency Unit and we are part of the monetary council. This is because of our own domestic laws that we are part of that monetary council. It goes beyond merely being a member of the Organisation of East Caribbean States; more so, it is enshrined in our own legislation that we have created a monetary council which will be the authority for circulating legal tender notes within Dominica. Therefore, the East Caribbean Central Bank is our own central bank. Ecuador has its own central bank; so do Venezuela, Cuba, Bolivia and Nicaragua.

The Prime Minister clearly indicated that because we are part of a common currency union, that is to say, the East Caribbean Currency Unit, the E.C Dollar, we would not be able to participate in this undertaking.”

Dominica became a member of ALBA in 2007.