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

42 The first Barbados currency notes. amount of money in circulation in each territory, was not acceptable to the other countries. After another unsuccessful round of discussions in Barbados on August 17, 1973, Prime Minister Barrow threatened to take the case to the International Court at The Hague. This helped to speed up the process and at the next meeting in St. Kitts in early November 1973, a consensus was reached. This “Supplementary Agreement” provided for the redemption of ECCA notes circulating in Barbados at the rate of EC$4.80 = £1, with settlement to be made partly in sterling and partly in Government of Barbados securities. The conversion rate between the ECCA and Barbados currencies was fixed at one Barbados dollar to one East Caribbean dollar. Barbados would receive a share of the General Reserve Fund of the ECCA, equivalent to 10 per cent of the ECCA notes and coins withdrawn from circulation in Barbados between December 3, 1973, and March 31, 1974, after which date Barbados would cease to be a member. Finally, the Government of Barbados agreed to contribute $350,000 to defray the costs of the removal of the ECCA headquarters from Barbados to St. Kitts.