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

64 The use of delegated authority The Bank assumed some of the responsibilities which were previously within the jurisdiction of the minister of finance. One example was the issuing and updating of regulations affecting exchange control transactions. The ability to effectively monitor foreign exchange transactions was strengthened on several occasions during this period. During 1977, on the advice of the Bank, the Government introduced legislation to regulate the receipt and sale of foreign exchange by hotels and restaurants but it was never implemented. Other adjustments affected, inter alia , the frequency of purchases by the commercial banks from the Central Bank (1976), the transfer of property to non-residents (1981), time-sharing (1982), fees payable on the remittance of funds from Barbados (1983) and the approved list of Authorised Dealers and Depositaries for foreign exchange purposes (1984). In support of the increased responsibility for exchange controls, steps were also taken to improve the availability of statistics for managing the system. Starting in 1979 quarterly information on the volume and direction of foreign exchange movements was compiled. The computerisation of the Export Proceeds in 1981, which facilitated easier tracking of export receivables, was followed by a similar system for merchandise import payments in 1985. An amendment to the Rate of Interest Act in 1983 enabled the Bank to fix interest rates (subject to the minister's approval) and thus avoid delays in implementing necessary changes in the rates. In November 1975, the minister of finance delegated to the Bank his powers under the Banking Act 1963-45. This gave the Bank the power to grant or revoke bank licences, to ensure that capital and reserve requirements were met, as well as prompt submission of returns and accounts of the banks’ operations. Efforts to exercise some leverage over the level of credit started early in the period. The Hire-Purchase Credit-Sale and Hire-Control Act had come into force in October 1975, giving the Bank the right, under ministerial supervision, to control all credit extended under the terms in question. Early in February 1977, in the face of weakening foreign reserves, Bank staff visited entities that offered instalment credit. Soon after, the