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

Chapter 1: Background to Establishment 17 Items (b) through (e) represented additions to the traditional currency board functions. However, by way of comparison with other regional central banks, Ramsaran (1995), notes that, “The functions given to central banks in the Caribbean differ very little in the respective legislations...” The formation of the Central Bank of Barbados therefore dates from May 2, 1972, constituting a relatively longer time after political independence than most other central banks in Caricom. This reflects to some extent the fact that for some time after 1962, when the Federation of the West Indies collapsed, Barbados had been contemplating a union with the Windward and Leeward Islands. The difficulties in getting technical assistance with establishing the Bank and withdrawing from the ECCA also contributed to the delay. AN OVERVIEW OF THE OPERATIONS The Bank’s operations since 1972 can be divided into three phases. The first one ended in 1975, with the institution becoming a full- fledged central bank, an achievement which was highlighted in the Annual Report for that year. 13 During its formative years, Barbadians were generally supportive of the Bank. The spirit of independence was still strong and the Bank was seen along with the national anthem and flag as an important symbol of nationhood. The issue of the new Barbadian currency was a major achievement for the institution. Between 1975 and 1986 came a period of growth and consolidation which was crowned by the move to the new headquarters building. During these years, the Bank grew in stature and its influence was pervasive; this was helped by the rapid expansion in its operations and its unrivalled understanding of economic and financial relationships in Barbados. However, towards the end of the period there were the first signs that the public’s unquestioned support was coming to an end. After 1987, the Bank was a different organisation in many regards as the founding fathers passed the torch to a new generation. As it moved into a new millennium, the Bank did what was required of it to be more