Barbados has fortified its financial defences and reaffirmed its commitment to a stable currency through a strategic mix of repatriated funds and calculated foreign exchange sales, according to the Central Bank of Barbados’ latest annual report.
The initiatives, aimed at preserving the fixed exchange rate of two Barbados dollars to one US dollar, have helped to shield the economy from external volatility and bolster investor confidence. In 2024, the country repatriated approximately $84 million in foreign currency previously held abroad, supporting a solid boost to international reserves.
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Seventeen repatriation transactions were executed during the year, underscoring the Central Bank’s proactive stance in maintaining economic resilience. Although this figure reflects a $51 million decline from 2023, the bank noted that these efforts significantly contributed to sustaining foreign reserves.
“Safeguarding the fixed exchange rate remains a top priority,” the report stated, highlighting that Barbados dollar sales abroad rose by $4 million, reaching $37 million in 2024.
Meanwhile, foreign exchange sales included $33 million in US dollars — less than half the amount sold the previous year — and $8 million in British pounds, down by $7 million from 2023. Canadian dollars, Eastern Caribbean dollars, and euros each brought in an additional $2 million.
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The Central Bank emphasized the importance of these actions in maintaining macroeconomic stability, linking the strength of the Barbadian dollar to a deliberate reserve management strategy.
“Protecting the peg is fundamental,” the Bank declared. “It underpins economic certainty and the livelihoods of Barbadians.”
By the end of 2024, gross international reserves soared to a historic high of $3.2 billion — far exceeding the internationally accepted 12-week benchmark. This surplus acts as a vital cushion against unpredictable shifts in global markets.
The report concluded that such strong reserve levels not only preserve the value of the local currency but also enable the Central Bank to fulfill external obligations and support Barbados’ import-reliant economy.
In a world of continued economic uncertainty, the Central Bank’s firm stance on currency stability and prudent reserves management remains central to the island’s financial health and long-term growth.
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