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

28 with Section 42 (1) of the Central Bank Act, which requires, in part, that the Central Bank be banker to Government. The department’s responsibilities were broadened after the Bank became the depository and fiscal agent for dealings with the IMF and the IDB in 1973 and 1974. Also in 1974, the management of the debenture component of the Public Debt was taken over from the accountant-general and several government departments opened accounts with the Bank. Exchange Control The Foreign Exchange Department was established on January 1, 1973, with Brathwaite (formerly the acting bank secretary) as manager. This department came into existence after the minister of finance and planning (on December 23, 1972) delegated to the Bank the powers entrusted to him under the Exchange Control Act, 1967- 53. It meant that the Bank now had jurisdiction over a wide range of foreign exchange transactions, but those involving amounts of $250,000 or over had to be referred to the minister for his decision or direction. The minister also designated commercial banks and trust companies as authorised dealers and depositories, thereby permitting these entities to sell foreign exchange for import payments, holiday and business travel. In December 1973, the department was renamed the Exchange Control Department. Amendments to the Exchange Control Act, with effect from February 28, 1974, designated all currencies other than the Barbados currency as foreign currencies and all persons and companies resident outside Barbados as non-resident for exchange control purposes. This meant that transactions involving non resident entities (for example, real estate sales and foreign investment), required exchange control permission. Simultaneously, the Bank instituted the practice of issuing instructions relating to the administration of the Act by way of exchange control circulars; by year-end, 19 such circulars had been issued.