Which institution is Barbados’s central bank, founded in 1972 under the Central Bank of Barbados Act?

The Central Bank of Barbados is Barbados’s central bank, founded in 1972 under the Central Bank of Barbados Act.

The bank was established on 2 May 1972, replacing the Eastern Caribbean Currency Authority’s role in Barbados. It became responsible for monetary policy, currency management, and banking regulation in the independent Caribbean state. Its headquarters are in Bridgetown.

The Central Bank of Barbados issues the Barbados dollar and manages the country’s foreign reserves. The Barbados dollar has long been maintained at a fixed exchange rate with the United States dollar, at two Barbados dollars to one US dollar. This arrangement makes exchange-rate stability a major feature of the bank’s work.

It is distinct from the Eastern Caribbean Central Bank, which serves several other Eastern Caribbean countries and issues the East Caribbean dollar. Barbados uses its own national currency and has its own central bank. The institution also supervises financial institutions and supports the stability of Barbados’s payment system.