The Central Bank

What is monetary policy and how is it different from fiscal policy?

Monetary Policy is the term used to characterise the measures taken by a central bank, in order to influence an economy. This is done principally through the central bank's regulation of the flow of money and credit in the banking system. In The Bahamas, the fundamental objective of monetary policy has always been to maintain stable credit and other conditions to support the fixed parity between The Bahamian and U.S. dollars, which has prevailed since 1973, while simultaneously allowing the economic development objective to be pursued.

Fiscal Policy is the term used to characterise measures taken by a government to influence an economy. These decisions involve mainly government's use of expenditure and taxation policies to bring about desired macroeconomic objectives.

  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