ValueCritic

The potential repeal of the Federal Reserve’s Interest on Reserve Balances (IORB) could ripple through Caribbean economies, despite their limited direct ties to US monetary operations. While countries like Trinidad and Tobago and Jamaica maintain managed exchange rate regimes and lack deep financial markets, their banking systems, sovereign financing, and foreign reserves remain tightly linked to global US dollar liquidity. Our latest on how a change in the IORB can affect Caribbean US dollar liquidity.

How A Change In The US IORB Could Gently Reshape Caribbean Bank and Sovereign Risk. The US FED, Interest on Reserve Balances (IORB) may seem far removed from Caribbean economies, but any move to repeal or lower it could send shock waves through global dollar funding systems.