Prime Minister Gaston Browne is urging the Eastern Caribbean Central Bank (ECCB) to invest a portion of its foreign reserves in strategic development projects, arguing that the move could accelerate economic growth while maintaining the stability of the Eastern Caribbean Currency Union.
Addressing the 113th Meeting of the ECCB Monetary Council in Dominica on Thursday, Browne proposed that the Central Bank allocate between five and eight percent of its reserves through innovative financing instruments to support renewable energy, infrastructure and other priority sectors across the region.
“The Bank must… assist in catalyzing funding for the Big Push to strengthen regional economies, by developing creative and innovative credit and securities instruments, utilizing a small portion (possibly 5-8 percent) of its reserves,” Browne said.
He argued that stronger OECS economies with reduced dependence on foreign direct investment and imports are essential to maintaining a healthy backing ratio for the EC dollar. Browne said the Central Bank could strengthen the sustainability of its foreign currency reserves by investing in projects that expand regional productive capacity rather than relying solely on traditional reserve management.
Browne said the proposal will be discussed by members of the Monetary Council as a strategic priority.
The Prime Minister linked the proposal to the ECCB’s “Big Push” initiative, which seeks to double the size of the Eastern Caribbean economy and increase regional gross domestic product to about EC$50 billion over the next seven years. He described the initiative as a wealth-creation agenda focused on expanding entrepreneurship, investment, ownership and earning opportunities throughout the Currency Union.
He also pointed to ongoing efforts to expand renewable energy financing through the Resilient Renewable Energy Infrastructure Investment Facility. Browne said approximately US$200 million has already been secured from development partners and proposed increasing the facility to US$300 million with additional support from the Central Bank.
According to Browne, investing in renewable energy and other critical infrastructure would reduce the region’s dependence on imported fossil fuels, lower foreign exchange leakage and strengthen the long-term resilience of Eastern Caribbean economies.
This article was originally published by Antigua News Room. Read the original article here: PM Browne Urges ECCB to Invest Part of Reserves in Regional Development.