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

Barbados’ monetary history closely follows that of other British Eastern Caribbean islands. Since the 18th century, Spanish silver dollars (“pieces of eight”) circulated widely alongside British sterling currency.

• In 1848, Barbados formally adopted the British sterling currency, although Spanish silver dollars continued in circulation until demonetized in 1879.

• The conversion rate used was 1 dollar = 4 shillings 2 pence.

• Starting in 1882, private banknotes denominated in dollars circulated alongside sterling.

• Between 1938 and 1949, the government of Barbados issued paper money denominated in dollars.

• In 1949, with the introduction of the British West Indies dollar, Barbados’ currency became officially linked with other Eastern Caribbean territories.

• In 1965, the East Caribbean dollar replaced the British West Indies dollar in Barbados.

• In 1972, the Central Bank of Barbados was established, and in 1973 it issued the current Barbadian dollar, replacing the East Caribbean dollar at par.

• Since July 5, 1975, the Barbadian dollar has been pegged to the US dollar at an official fixed rate of approximately US$1 = BBD$1.98, effectively rounded to 2:1 in practice.

Coins

• Coins in circulation include 1, 5, 10, 25, and 50 cents, and 1 dollar.

• Designs feature local flora and fauna such as the Barbados green monkey, the national flower (Pride of Barbados), and the trident, a national symbol.

Banknotes

• Banknotes in circulation include 2, 5, 10, 20, 50, and 100 dollars.

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

• Notes depict important historical figures from Barbados, national symbols, and cultural elements.

• The Central Bank of Barbados is responsible for issuing and regulating banknotes.

Economic and Monetary Context

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

• The fixed exchange rate policy provides 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, its fixed peg to the US dollar, and its role in the country’s economic stability and cultural identity.