It is one of the greatest sources of national pride. Barbadians speak proudly when they refer to the Barbados dollar.
And with the island preparing to celebrate its 47th year of Independence at month-end amid a protracted economic downturn, the strength and value of the island’s currency is as important as it has ever been.
According to information from the Central Bank of Barbados, Barbados’ first national currency was issued in 1973 when the Barbados dollar replaced the Eastern Caribbean dollar. This was one year after the country assumed control of its monetary system and established the bank.
Prior to that, for the majority of three-and-a-half centuries, the value of money here depended on the authority of the British Crown and it was not until 1951 “that a regional currency with its own regulating board was introduced”.
Such boards had been recommended since the 1920s and during the 1930s various colonies, including Barbados, established currency boards of their own.
Not only was Barbados an original signatory to the establishment of the Eastern Caribbean Currency Authority in 1951, which was set up following the withdrawal of British Guiana and Trinidad and Tobago to open their own central banks, but the authority’s headquarters were in Barbados.
Then on May 2, 1972, came the Central Bank of Barbados via an act of Parliament and the resulting independent monetary policy paved the way for many things, including the Barbados dollar.
While it was originally on par with the Eastern Caribbean currency, Barbados’ dollar was revalued in 1975 and fixed at an official rate of $1.98 to US$1, a rate sustained ever since.
Denominations of two, five, ten, 20, 50 and 100 dollar notes are now in circulation, with the 50 being the most recent denomination. There was also a one dollar note but this was replaced by a coin equal in value.
Barbados officially introduced a new family of bank notes on June 4 this year, signalling a fresh start for the island’s currency. As the economic downturn continues, Central Bank Governor Dr DeLisle Worrell and others have stressed the importance of maintaining Barbados’ United States currency peg, which has been in place for 38 years. (SC)
