Available data show significant progress in the deployment of electronic payments such as mobile money, payment cards, payment apps, direct debit and credit funds transfer, instant retail payments and virtual cards as alternatives to cash. In particular, mobile money transactions have grown by leaps and bounds.
However, in the absence of capital controls, capital flight is possible where there is a differential between the domestic interest rate and interest rates abroad. Unbridled outflows could therefore put the maintenance of Barbados’ current fixed exchange rate regime at risk.