Notes to Monetary Authority Tables

ONLINE STATISTICS: NOTES TO MONETARY AUTHORITY TABLES Notes to the Tables

Section A

Monetary Authorities

Table 1: International Reserves and Net Domestic Assets

This table is a consolidated summary of the assets and liabilities of the Central Bank and Central Government.

Monetary Base

Commercial Banks Reserve Position -Defined as deposits at the Central Bank plus cash in till at Commercial Banks.

Currency with the Public -Total currency liability of the Central Bank less cash held at Commercial Banks and the Treasury. A break down of this item is given in the table "Money Supply".

Monetary Base - is the sum of the Commercial Banks reserve position plus currency with the public.

IR of Monetary Authorities

Central Bank Foreign Assets (Net) & Other Securities -is the total external assets of the Central Bank less short term foreign currency borrowing plus foreign securities of the ICF and Staff Pension Scheme which are managed by the Central Bank.

Government Foreign Assets - includes foreign assets of the General Accountant, sinking funds for domestic debt and statutory sinking funds for foreign debt. (See Notes to table H1).

Monetary Authorities Foreign Assets - is the sum of Central Bank foreign assets (net) plus Government foreign assets.

IMF Credit - is the total borrowing from the International Monetary Fund for balance of payment purposes.

Net International Reserves (NIR) - is the sum of the Monetary Authorities foreign assets minus credit from the International Monetary Fund.

Net Domestic Assets

Net Claims on the Public Sector - is the sum of Central Bank's holdings of Government treasury bills and debentures plus loans to Central Government less Government deposits at the Central Bank and deposits of the National Insurance and other Non Financial Statutory Bodies.

Credit to Commercial Banks - is the total short term borrowing by banks plus borrowing under special discount schemes.

Credit to the rest of the Financial Sector - includes loans and advances plus holdings of securities and equity in public financial institutions.

Net Domestic Assets - is defined as:

(1) Net claims on the Public Sector plus credit to Commercial Banks and the rest of the financial sector plus other unclassified items.

2 (2) The Monetary Base minus the NIR of the Monetary Authorities.

Table 2: Central Bank of Barbados - Assets Foreign Currencies and Balances

Foreign notes and coins; balances with the Bank of England, the Crown Agents, the Federal Reserve Bank of New York and other foreign institutions; regional clearing accounts.

Money Market Securities

Treasury bills and other securities of the U.K., U.S., Canada and other foreign governments and international organisations. The increase in December 1974 results from the takeover by the Central Bank of foreign assets previously held by Government and statutory bodies.

Advances to Banks

Includes Sugar Industry Agricultural Bank up to March 31, 1978, and thereafter the Barbados National Bank Agricultural Division.

Other Assets

Includes expenditure account, fixed assets and domestic clearing account.

Reserve Tranche

The Reserve Tranche (Gold Tranche prior to second amendment of the IMF Articles of April, 1976) is that part of Barbados' quota in the Fund which must be paid up in SDRs, US$ or any other currency except in Barbados dollars. Fluctuations may occur as a result of exchange movements or if Barbados draws on its Reserve Tranche.

Holdings of SDRs

From time to time the IMF allocates SDRs to its members in proportion to their quotas. Members are free to convert these SDRs into US$ or any other foreign currency or they may hold them as part of their reserves.

Table 3: Central Bank of Barbados - Liabilities

Special Government Deposits

Includes (1) up to December 1981 deposits created in favour of Government funds whose foreign assets were sold to the Central Bank in December 1974; these deposits may only be drawn upon after prior agree- ment between the Government and the Bank. (2) The contra-entry of the Reserve Tranche on the assets side of the Bank's balance sheet. (3) The proceeds of Government foreign borrowing deposited with the Central Bank. (4) Project Funds,

Banks' Deposits

Deposits of Commercial Banks and the Barbados Savings Bank.

Other Deposits

Deposits of public enterprises and financial institutions (except the Barbados Savings Bank) and of regional and international organisations.

Foreign Deposits

3 As of April 2006, foreign deposits of commercial banks has been included in the Deposits of Banks.

Table 4: Central Bank of Barbados - Foreign Assets by Currency

C.M.C.F:

The CARICOM Multilateral Clearing Facility (C.M.C.F.) came into effect on June 16, 1977. This Facility superseded the bilateral clearing arrangements which were in effect prior to June 16, 1977, and was established with the following aims and objectives:

(a) to facilitate settlement on a multilateral basis of payments for eligible transactions among the participating countries;

(b) to promote the use of participants' currencies in settling eligible transactions between their respective countries and thereby effect economies in the use of their foreign exchange reserves; and

(c) to promote monetary co-operation among the participants and closer relations among the banking systems in their respective countries and thereby contribute to the expansion of trade and economic activity In the CARICOM region.

This facility was suspended on the March 31,1983 when it reached its credit limit of US$100 million.

Balance in Euro commenced January 1, 1999, while those in the Deutche Mark were discontinued.