The Tribune

EDITOR, The Tribune.

RECENT comments arising from a public discussion at COB on Exchange Control again raises inaccurate information as to the reasonably expected consequences of the lifting of Exchange Control.

The lifting of the controls will inevitably increase deficits (spending more than you have). Estimates for 2012 will exceed B$350 million or more.

The value of the B$ will decrease.

On the positive side, if and that is large, a vacation package is sold in B$ then that will lower and be very competitive but we all know that will never happen as all the sales are banked in Coral Gables or Ft Lauderdale and never see the shores of The Bahamas.

Imports will increase which we cannot afford when coupled to having the highest inflated port and shipping costs in the world.

Internal inflation will increase. Our salaries/wages will reduce which will add to the social disquiet which prevails now.

Those with access to Foreign Currencies will hoard them, US dollars will be their savings and actually eventually the US dollar in time will become the de facto currency in a similar fashion to Zimbabwe.

We have to face the reality the continual acceptance, artificially, that the Bahamian dollar is of equal value to the US dollar is solely and only in the words that state it...fortunately so far our Foreign Currency earnings cover our US dollar outgoing so we are covered.

I hope this finally open the eyes on this issue?

W THOMPSON

Nassau,

March, 2012.