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

6 The advent of central banking The collapse of the Federation of the English- speaking islands in 1962 also had important implications for currency arrangements in the region. In anticipation of that collapse, Jamaica had established a central bank in 1961. It then attained independence from Britain in the following year. Trinidad and Tobago and British Guiana became independent soon after, withdrew from the BCCB and established their own central banks in 1964 and 1965, respectively. The British Caribbean Currency Agreement of 1964 provided for the BCCB to cease the issuance of currency by January 1966, for its dissolution by June 1967 and for a successor body, the Eastern Caribbean Currency Authority (ECCA) to be formed. The ECCA came into existence in 1965, with Barbados as its headquarters. The currency issued by the new institution circulated in Antigua, Dominica, Montserrat, St. Kitts-Nevis-Anguilla, St. Lucia, St. Vincent and Barbados. Two major developments paved the way for further changes in regional currency arrangements and the formation of the Central Bank of Barbados. The first was the attainment of political independence by Barbados in November 1966, which made the national government responsible for both internal and external policy formulation. Political sovereignty facilitated a number of important financial developments that supported the establishment of a central bank. Links with international financial institutions were forged when Barbados joined the Inter-American Development Bank (IDB) in March 1969. The financial system had also Top: Note issued by the British Caribbean Currency Board. Bottom: Note issued by the Eastern Caribbean Currency Authority.