The Central Bank

What are the main tools employed by the Central Bank in performing its functions?

Among the functions of the Central Bank of The Bahamas, the regulation of the supply of money and credit is especially important to the Bank's overall objective of monetary stability. Accordingly, there are five primary instruments through which the Bank seeks to influence the flow and supply of money and credit in the banking system: Reserve Requirements, Discount Policy, Selective Credit Controls, Moral Suasion and Open Market Operations. In The Bahamas, while Open Market Operations have been employed within a very limited context, and Reserve Requirements have remained virtually unchanged, Discount Policy--supplemented by Moral Suasion--have been used with far greater regularity, and have been most effective in the Bank's efforts to manage bank liquidity.

  1. What are the main tools employed by the Central Bank in performing its functions?
  2. What are reserve requirements?
  3. What is the Discount (Bank) Rate and how does it relate to Discount Policy?
  4. What have been the changes in the Discount (Bank) Rate over the past few years?
  5. Does the Central Bank accept deposits from or make loans to the general public?
  6. How does the Central Bank make money?
  7. Who are the Bank's former Governors and Deputy Governors?
  8. Is the Central Bank a Government department?
  9. Is there any significance to the selection of the Sandollar as the Central Bank of The Bahamas' Logo?
  10. What Publications does the Central Bank produce and when are they made available to the public?
  11. How can I get copies of the Bank's publications and is there a charge or fee for them?
  12. What is monetary policy and how is it different from fiscal policy?

Available FAQs