? ” that award - winning scientist and environmentalist, dr. david suzuki, delivered next door. that theme remains of great significance because, as a small open economy, we are very vulnerable to the disastrous effects of fossil fuels. we are especially vulnerable to the environmental degradation that fossil fuels cause. global warning created by fossil fuels makes us susceptible to the hazards of climate change. a recent imf blog quoted scientists as warning that in the absence of mitigating actions, global temperatures may rise by more than four degrees celsius above pre - industrial revolution levels by the end of the century. this phenomenon will lead to inundation of low - lying island states and extreme weather events, the scientists predict. the attendant beach erosion would bode ill for our main industry tourism. indeed, we in the caribbean are among the top 25 most vulnerable nations exposed to shifting 1 / 2 bis central bankers'speeches weather patterns and global climate change. and we have already started to experience the extreme weather conditions about which scientists warn. we only have to flashback to dominica 2017 and recall how irma and maria wrecked our neighbour. those storms wiped out over 200 percent of dominica ’ s gdp in fewer than two days. that is an astronomical cost to pay and requires sustained coordinated global action to minimise the impact on small island economies like ours. and this is not the only price that comes along with our dependence on fossil fuels. high fuel prices impinge barbados ’ economic growth, stymie our competitiveness, and erode our foreign reserves, the lifeblood of our economy. in 2008, when oil prices hovered around us $ 90 per barrel, our balance of payments felt the impact. as the cost of fuel imports sky rocketed, shipping costs also rose, pushing up the price of imported goods. these increasing costs had an inflationary effect, while our valuable foreign exchange was used to help pay for these imports. high oil prices do have ripple effects for us. consider the savings in foreign exchange, therefore, if we were to move to renewables, harnessing the sun, wind, water, and now biological resources and organic waste. these savings have the potential to facilitate projects that stimulate greater economic activity and fuel growth. today, the bank is concerned about the current global uncertainty, created in part by geopolitical tensions, surrounding the price of oil. significant increases in the price of oil now that we are stabilising the economy represent a distinct downside risk that could offset our economic

impact of covid - 19 and in lifting the indian economy out of the depths of the pandemic ’ s contraction. i would not hazard the audacity of anticipating the judgment of history, but today, india is much better placed to deal with future waves of the pandemic relative to the first wave. in the documentation of this journey, however, what i fear may not receive a fuller appreciation is that the rbi ’ s pandemic response was fashioned around and launched with a central anchor, a leit motif if you will, that bound everything together into a coherent whole. i refer to the governor ’ s statements, which have become an integral element of the institutional edifice of the rbi ’ s pandemic response. i propose to balance the future narrative upfront by sharing with you an insider ’ s view of some noteworthy aspects of these statements that may go unnoticed among the minutiae of rationale, high frequency indicators and measures. delving deep into hidden inner reserves of self - belief, conviction and fortitude, and guided by the light shone by the words of mahatma gandhi, governor shri shaktikanta das has made 13 ‘ pandemic ’ statements so far, starting on march 27, 2020 when the monetary policy committee advanced its scheduled meeting to deal with the extraordinary and unprecedented situation. the first noteworthy characteristic of the statements is that they have been visionary. in fact, the statement of february 6, 2020 ahead of the formal declaration of the pandemic seemed to have a premonition of the dark days that were to follow. this is reflected in the manner in which it assured markets that policy space is available for future action, which needs to be ‘ suitably timed ’ and ‘ used appropriately ’. the march 27, 2020 statement called on the nation to mount a war effort to combat covid - 19, while emphasising that ‘ tough times never last ; only tough people and tough institutions do ’. my sense is that a vision of the unprecedented loss and isolation that was to follow was already in the mind ’ s eye when that statement soothed frayed and tense expectations by stating that the rbi ‘ is at work and in mission mode ’. it became the launching pad for aggressively unleashing an array of instruments covering many of the liquidity and regulatory measures enumerated in the preceding section as well as deferment of prudential standards. second, the statements were a beacon of light and hope amidst the encirc