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Brexit vs Caribbean

Is Brexit a threat for the Caribbean?

brexit vs caribbean

Britain has spoken! Availing themselves of their democratic right to be in full control of their own destiny, Brexit caused shock waves, felt around the world. Amongst those concerned, are the small islands territories making up the Caribbean.

There has been enough buzz for months about the potential impact of such an action. While many may have hoped for a different outcome as a means of security for themselves, today the reality is what it is and plans have to be made accordingly.

In the weeks ahead, while Britain defines its future in trade, immigration, tourism and other key areas, the Caribbean needs to pay close attention. Donor funding, while critical, is not the only area that needs to be reviewed. From CARIFORUM-EPA’s to foreign policy and tourism, there is much to be considered.

The Caribbean has enjoyed and anticipates continued strong ties to what, for most of the islands, was the proverbial “motherland”. The UK is home to many of our nationals proving that the ties that bind us are more than commercial ones.

Caribbean’s Correspondent Banking

Correspondent banking

Caribbean countries continue to pay very close attention to the challenges faced within the banking sector.

Alicia Nicholls in an article published on Caribbean Trade Law and Development clearly articulates the relationship between Caribbean banks and the international world.

“Correspondent banking relationships are Caribbean countries’ umbilical cord to the international financial system. They allow for the conduct of international trade and investment by facilitating crossborder payments, as well as the receipt and sending of remittances through international wire transfers. At the microlevel these relationships help local exporters to receive payments for their goods and services, local businesses to pay for imports, and poor families to receive remittances for their day to day survival. As I mentioned in an earlier article, the loss of correspondent banking relationships could spell disaster for the small, open economies of the region which are highly dependent on trade and investment flows, with implications for poverty reduction and eradication.”

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