If a sufficient number of their competitors take a payment method, it is very difficult for a merchant to refuse that payment mechanism. The result of this is that they have limited ability to resist increases in the cost of taking payments. And as costs of payments rise, they ultimately find themselves into the prices charged to consumers.
In the case of interest rates we are suggesting a refinement of policy, to reflect the strong links between Barbados’ financial system and North America in a more systematic way. In the case of the foreign exchange market, it is unclear whether any change is warranted, and we look forward to your views on our presentation.