Central Bank Of The Bahamas
Under the Central Bank of The Bahamas Act, 2000, the Bank is mandated to promote and maintain monetary stability and balance of payments, conditions conducive to the orderly development of the economy; in collaboration with other financial institutions, to promote and maintain adequate banking services and high standards of conduct and management therein; and to advise the Minister on any matter of a financial or monetary nature referred by him to the Bank for its advice.
In its monetary role, a central objective of the Bank is to ensure that adequate support is maintained for the fixed parity of the Bahamian dollar against the US currency. To do so, the Bank has to maintain adequate foreign reserves to support the dollar (the stock of its demand liabilities to banks and the public) and ensure that the demand for foreign exchange, stimulated principally by domestic credit expansion, does not exceed the pace at which the economy earns foreign exchange from real sector activities.
The Bank’s banking supervis
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