Both Sides of The Coin: The Story of The Central Bank of Barbados 1972-2017

14 which, independence would be a purely constitutional achievement. He described the domestic banking system as one of the last areas of the colonial arrangement that had not changed. Barrow was confident that the Bank would be beneficial to the country, asserting that it would never be a financial burden on taxpayers because by nature it made money. However, he promised that any printing of money would be determined “...within the limitations which will be set by some fiscal, financial and monetary policy.” The prime minister did not believe that the Barbados dollar would debase other regional currencies, noting that no such fears had been expressed when the Trinidad and Tobago currency was issued. With respect to central bank independence, he felt that there were enough safeguards written into the Bill to enable the Bank to pursue sound policies, “…subject to ministerial directives, of course…” In reply, Opposition Leader Tom Adams promised his party’s support for the Bill. However, he regretted that the Central Bank was only conceived after the failure of the proposed political union between Barbados and the Windward and Leeward islands. He felt that greater effort should have been made to turn the ECCA into a modern central bank. Adams described the Bill as simply another piece of legislation, mass-produced by the Westminster system, that would do very little to stop commercial banks from controlling the “commanding heights” of the economy and hoped for the speedy creation of domestic banking institutions. He warned that a devaluation of the Barbados currency could destabilise the Caribbean Free Trade Association (CARIFTA) and suggested that a regional approach to monetary and fiscal policies could prevent this eventuality. The opposition leader had much to say about central bank autonomy. He called for a clear relationship between the minister of finance and the Bank’s Board of Directors, drawing attention to the situation in the UK and US. He advised Mr. Barrow to think carefully before giving up many of the powers he presently exercised in relation to commercial banking and exchange control since he preferred to see those powers “in the hands of a Minister than in the hands of some pro-consul of the banking business.” In this connection, he cited the “disloyalty” exhibited by a former governor