United States President Donald Trump’s erratic handling of the US economy has drawn concern here and abroad, but some business leaders believe it could mean opportunity for the Virgin Islands’ financial sector.
Since taking office in January, Mr. Trump has unleashed a whirlwind of uncertainty on international financial markets, including imposing 25-percent tariffs on Canadian and Mexican imports this month only to postpone most of them within days.
Market turmoil
He also sent stock markets tumbling this week when he declined to rule out the possibility of an American recession in the coming months.
But during a forum organised March 6 by BVI Finance, business leaders said Mr. Trump’s unorthodox approach could play into the VI’s hands.
“We are in a rapidly changing world, where agility and strategic thinking will define the future of international finance centres,” Mourant Consulting Chairman Geoff Cook told the breakfast forum, which was themed “Behind the Headlines: The Trump Era, Global Geopolitics and the Future of International Finance Centres.”
Among other topics, the panellists discussed Mr. Trump’s “transactional approach” to global relations in the current financial climate.
Mark Pragnell, managing director of Pragmatix Advisory, acknowledged that the world has entered “a period of significant unpredictability,” and EY partner LaNishka McSweeney said international hubs like the VI should adapt accordingly.
“The best strategy for international finance centres is to remain neutral, invest in technology, and continue strengthening our regulatory frameworks,” Ms. McSweeney said.
Oliver Cooper, legal counsel at Charles Russell Speechleys, agreed that the VI is well positioned to seize the initiative.
“Trump’s policies may create volatility, but they also present new avenues for investment and capital flows,” he stated.
Mr. Cooper said global money hubs such as the VI will increasingly play a key role in facilitating international transactions.
He also said the territory has a strong track record in reacting to emerging market opportunities.
“Those that pivot quickly and maintain strong regulatory credibility will continue to attract capital,” he said.
‘Financial corridors’
Mr. Pragnell added that money centres like the VI could create “new financial corridors” between economic blocks.
“Collaboration and innovation will be key to ensuring international financial centres are not sidelined in a world where economic nationalism is on the rise,” he said.
Mr. Cooper stressed the importance of flexibility in providing bespoke money solutions.
“The ability to remain independent and serve as a bridge between competing economies will define the success of international financial centres,” he said.
Ms. McSweeney also advised the VI to embrace new opportunities such as artificial intelligence.
“The winners will be those who embrace technology to enhance efficiency and transparency,” she said. “We are going to have to start lobbying for ourselves as a block and telling the good story of the great things we have done and will continue to do — especially in the Caribbean, where we’re more responsive, more proactive and the opportunities are there. We just have to be ready to take advantage of them.”
