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Throughout 2021, the Central Bank of Barbados was involved in a number of initiatives and activities both related to its core objectives of maintaining Barbados’ fixed exchange rate and promoting financial stability; and more broadly to supporting and promoting the arts, education, and culture.
This article, the second in a four-part series, looks back at some of the Bank’s activities and initiatives over the past 12 months. Read parts one and two here.
Local and regional economists gathered virtually in late July for the Central Bank of Barbados’ 41st Annual Review Seminar where the focus was on “Pursuing Resilience in the Shadow of COVID: Overcoming the Pandemic’s Economic Fallout.”
In his opening remarks, Governor Cleviston Haynes spoke of the severe impact the pandemic has had on regional economies, saying:
“The COVID-19 pandemic has brought into sharp focus many of the vulnerabilities and inequities that have for too long been characteristic of the challenges faced by our economies.
"Here at home, the lesson has been harsh. After the initial progress achieved in restoring macroeconomic stability through the reforms initiated under the Barbados Economic and Recovery Transformation (BERT) programme, the pandemic has stymied the recovery, with an unprecedented contraction of the modern Barbados economy.”
He also warned that recovery would not come overnight, and said it was important that as the region seeks to rebuild, it does so with an emphasis on becoming resilient to future shocks.
This was also the focus of the seminar’s keynote, “Rebuilding Caribbean Economies for the Future: Opportunities for Resilience Through Diversification,” which featured Gervase Warner, President and CEO of Massy Group; Ian Durant, Director, Economics Department, Caribbean Development Bank; and Michelle Doyle, Advisor to the Governor, Central Bank of Barbados.
The August edition of the Bank’s Caribbean Economic Forum brought together three of the region’s leading businesspersons - Adam Stewart, Group Executive Chairman of Sandals Resorts International; Anthony Ali, Chief Executive Officer of Goddard Enterprises Limited.; and Anthony N. Sabga III, Group Chief Executive Officer of the Ansa McAl Group of Companies – for a discussion on how to make private sector companies in the region globally competitive.
During the 90-minute discussion, the CEOs weighed in on several topical issues, including the remote work versus in-person work debate, the importance of small businesses to the economy, and the value of tourism in the region.
In September, the Bank, in conjunction with the Financial Services Commission (FSC), published the 2020 Financial Stability Report, an analysis of the health of Barbados’ financial system during the year.
The report examined the performance of the six main players in the system: commercial banks, insurance companies, credit unions, mutual funds, pension funds, and deposit-taking finance and trust companies as well as offered the results of stress tests regulators conducted to determine their ability to withstand future shocks.
It also looked at the evolving payments landscape in Barbados, detailing how payments were made in 2020 and providing an overview of the new Barbados National Payment System Act, which was passed in February 2021.
Read Five Takeaways from the 2020 Financial Stability Report.