Message from the Governor General I Extend Best Wishes to the the Bank’S History
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2 June 10, 2014 Central Bank of The Bahamas Message from the Governor General I extend best wishes to the the bank’s history. I applaud the ments, I implore you to continue Central Bank of The Bahamas as Central Bank for its willingness to to diligently pursue your man- this important national institution enlighten the community on the date of fostering an environment celebrates its 40th anniversary. work of this institution which has of monetary stability conducive The Bank is charged with moni- certainly been a great contributor to economic development, and toring and regulating the coun- to the development of our coun- to ensuring a stable and sound try’s financial institutions, which try. financial system in the Bahamas. is an arduous task that began on I acknowledge the outstanding I extend best wishes to the June 1st, 1974, and has progressed service of the loyal and dedicated Central Bank of The Bahamas and steadfastly until today. employees of the Central Bank gratitude on behalf of the Baha- This milestone deserves to be and thank them for their com- mian people. commemorated and an Anniver- mitment and contribution to this sary Booklet produced to docu- institution and The Bahamas. Sir Arthur Foulkes ment and heighten awareness of As you celebrate your achieve- Governor-General Message from the Prime Minister, Commonwealth of The Bahamas I offer my congratulations to given the enabling conditions in Bank. This speaks well for the sta- the Governor and Board of the 1974 on its establishment. In the bility of the institution and for its Central Bank of The Bahamas on forty years since its establishment, leadership. The Central Bank has the occasion of the 40th Anniver- I can assert in my capacity as Min- more than adhered to and fulfilled sary celebrations of the establish- ister of Finance, that together with its mandate as provided for in the ment of the Central Bank of The my predecessors in this portfolio, Act and in its founding principles Bahamas. I do so on behalf of the I have been the beneficiary of the and has justified the confidence Government of The Bahamas and advice of the Central Bank in the that was reposed in the Bank at its in my capacity as Prime Minister coordination and balancing of the establishment. and Minister of Finance. nation’s overall economic strategy. As a nation, we have just com- The Central Bank of The The Central Bank of The Baha- pleted our 40th Anniversary of Bahamas is one of several core mas has also played a notewor- Independence and we are moving institutions that are closely iden- thy role in terms of safeguarding to celebrate another anniversary tified with the Independence of the integrity of the financial and on 10th July, 2014. The success of The Bahamas as it symbolizes the banking sector of our economy our independence of which we sovereignty of The Bahamas over which is such a vital part of our are justly proud has come about its monetary policy and related overall economic thrust. Through through the workings of institu- issues. It is a tautology that Inde- its banking supervision role and tions such as the Central Bank pendence meant having control oversight, it has been able to of The Bahamas which gives our over the essential organs of the ensure that The Bahamas remains independence credibility and state. In this sense, the estab- a safe and credible banking centre practical meaning. lishment of the Central Bank of and that the banking system could Once again, I offer my congrat- The Bahamas was a clear marker withstand all scrutiny. ulations and wish the Bank and all to all that despite our size, The In its fortieth year, the Bank those associated with it my best Bahamas was in full control of its can lay claim to the fact that it has wishes on this your 40th Anniver- monetary policy through the Cen- been led by five capable Bahamian sary. tral Bank and of its fiscal policy Governors. They have been sup- through the Ministry of Finance. ported by adroit professionals and Perry G. Christie This was no small achievement support staff at all levels of the Prime Minister 40TH ANNIVERSARY 1974 -2014 June 10, 2014 3 Message from The Honourable Michael Halkitis, M.P., Minister of State for Finance on June 1st, 1974 to carry out the and maintain monetary stability issuer of legal tender, banker to both independent monetary policy and and credit and balance of payments domestic banks and the government, financial sector supervisory functions conditions conducive to the orderly and regulator and supervisor of the entrusted upon The Bahamas after development of the economy; to banking sector. The Bank’s overall Independence in 1973. Prior to the promote and maintain an adequate policy objective is the promotion establishment of the Bank, there was banking system and high standards of a stable economic environment the Currency Board which was set up of conduct and management therein; conducive to high levels of domes- in 1919 mainly to issue currency. The and to advise the Minister of Finance tic production, employment, and Currency Board era spanned the early on any matter of a financial or mon- growth. This being said, I would also evolution of The Bahamas’ emer- etary nature. Additionally, one of the like to thank past Governors, the late gence as an international banking Bank’s major objectives is to safe- Mr. T. Baswell Donaldson, Sir William centre during the 1960s. In 1968, the guard the external value of the Baha- C. Allen, Mr. James H. Smith, and Mr. Bahamas Monetary Authority (BMA) mian dollar, which is fixed at a 1:1 Julian Francis and staff of the Central was established which assumed the parity with the United States dollar. Bank. I am pleased to extend congrat- aggregate foreign exchange risks of Over the past 40 years, the Bank So as you celebrate this mile- ulatory remarks and best wishes to the country. has significantly influenced the stone, I extend sincere congratula- The Central Bank of the Bahamas in The Central Bank of The Bahamas development of the country and for tions to the Governor, Mrs. Wendy celebrating 40 years of existence in Act, 1974, was superseded by the Cen- this I extend to you sincere apprecia- Craigg, Deputy Governor, Mr. Michael The Bahamas. tral Bank of The Bahamas Act, 2000. tion for your valuable contributions. Lightbourne and the entire staff of the The Central Bank was established It is the duty of the Bank to promote The Bank fills the traditional roles of Central Bank of The Bahamas. Greetings from the Governor Over these forty years, we have as we sought to meet the challenges development and strength, and of built confidence and credibility and opportunities presented along the current staff, who, through their upon four very important pillars of the way. In keeping with the evolving professionalism, hard work and responsibility. Firstly, as it relates to business focus, we have overhauled commitment, are continuing in the monetary policy, the Bank, since its our legislative and supervisory frame- tradition of excellence. Then, there inception, has sought to implement works, becoming more risk-based in are the numerous public and private appropriate policy measures to main- our approach; leveraged greater use stakeholders who continue to support tain the fixed exchange rate regime of technology in making our business us in our mandate, and to whom we and support the overall development processes more efficient; incorpo- also express our immense gratitude. of the Bahamian economy. Secondly, rated both strategic and succession As the Central Bank, we should be in terms of financial regulation and planning in our long-term develop- proud of our achievements, but there supervision, we continue to promote ment, and expanded our economic is the road ahead of us. As is often financial stability through balanced, analytical capabilities. the case, the achievement of past There are, around us, constant relevant and consistent oversight of By virtue of the Bank’s overarch- objectives, pavesw the way to new reminders of the important role played the financial sector. Thirdly, through ing mandate, we have and will con- challenges and opportunities, which by central banks in pursuing policies our oversight mechanisms, we assure tinue to play a central role in provid- require a level of agility, flexibility and aimed at achieving financial sector stable and efficient payments sys- ing guidance and leadership in many readiness—if we are to realize contin- stability and supporting the overarch- tems, which support confidence in financial sector initiatives, while ued success. ing economic growth objective. financial transactions. Finally, our also serving as a reservoir of exper- On this Ruby anniversary, we This year marks the 40th Anni- collection, analysis and publication of tise and information, which can be should all be proud of our achieve- versary of the Central Bank of The reliable monetary, financial and real drawn upon by the government and ments, and commit ourselves to Bahamas, and presents another sector statistics, empower the public non-governmental institutions—both providing the level of commitment opportunity for us to reflect upon our in their decision making processes. domestic and foreign. and focus that, moving forward, will rich legacy of transformation, assim- During the past four decades, Having the right resources is a redound to the success of this distin- ilation and adaptation, in the diligent we have also grown, in both the size very important part of our success. guished institution. execution of our mandate—one that and complexity of our operations, In this regard, I wish to acknowledge is closely intertwined with the evolu- and have transformed our organiza- the contribution of the many former Wendy Craigg tion of the Bahamian economy.