BRIDGETOWN, BARBADOS- The former Central Bank of Barbados Governor Dr. Delisle Worrell advocates for dollarization, proposing to replace the Barbados dollar with the United States dollar to mitigate the constant risk of devaluation. 

He highlights the success of dollarization in six countries, among which Bonaire, St. Eustatius and Saba, and argues that the benefits of having a local currency are outweighed by devaluation risks in small open economies like Barbados. 

Worrell suggests that utilizing the US dollar as the domestic currency would eliminate the fear of devaluation and allow for more efficient allocation of resources towards infrastructure, health, and education. He emphasizes that limited short-term credit is available even in dollarized economies, and using the US dollar as the domestic currency would not increase national spending power but would provide stability and confidence in the economy. 

Simple

Worrell proposes a simple process for shifting currencies, involving the exchange of local currency for US dollars held in reserve. He concludes that dollarization would offer Barbados and similar economies protection against devaluation risks and provide stability in purchasing power and wealth.