Comprehensive Financial History Report of Barbados

Basic Information

• Country ISO Code: BB

• Official Language: English

• Language ISO Code: en

• Current Official Currency: Barbadian Dollar

• Currency ISO Code: BBD

Monetary History of Barbados

The Barbadian dollar (BBD) has been the official currency of Barbados since 1935, replacing the British West Indies dollar at par. The currency is pegged to the US dollar at a fixed rate of 2 BBD = 1 USD.

Early Currency

• Before 1935, Barbados used the British West Indies dollar, which circulated throughout the British Caribbean territories.

• The British West Indies dollar itself was introduced in 1949, replacing various colonial currencies, but Barbados had its own local currency arrangements before that.

Introduction of the Barbadian Dollar

• In 1935, Barbados introduced its own dollar, initially pegged to the British pound sterling.

• The currency was decimalized, with 1 dollar subdivided into 100 cents.

• The Barbadian dollar maintained parity with the British West Indies dollar until the latter was replaced.

Peg to the US Dollar

• Since 1975, the Barbadian dollar has been pegged to the US dollar at a fixed rate of 2 BBD = 1 USD.

• This peg provides monetary stability and facilitates trade and investment, especially given the close economic ties with the United States.

Coins

• Coins have been issued in denominations of 1, 5, 10, 25, and 50 cents, and 1 dollar.

• Early coins were made of bronze and cupro-nickel; more recent issues include nickel-plated steel.

• Coin designs feature native flora and fauna, such as the Barbados green monkey, the national flower (the Pride of Barbados), and the Barbados trident.

Banknotes

• Banknotes are issued in denominations of 2, 5, 10, 20, 50, and 100 dollars.

• The $2 note is unique and less common but remains legal tender.

• Banknotes feature prominent Barbadian historical figures, national symbols, and cultural motifs.

• The Central Bank of Barbados is responsible for issuing currency and maintaining monetary policy.

Economic and Monetary Context

• Barbados has a diversified economy with tourism, international business services, agriculture, and manufacturing sectors.

• The fixed exchange rate regime helps maintain price stability and investor confidence.

• The Central Bank of Barbados manages monetary policy, foreign reserves, and banking regulation.

Summary Table

This report provides a detailed overview of Barbados’ monetary history, highlighting the Barbadian dollar as the official currency pegged to the US dollar, and its role in the country’s economic stability and cultural identity.