Development of financial markets Another major BSP strategic policy reform is to accelerate financial market development with special focus on the local currency debt market and foreign exchange (FX) market. We envision a more balanced financial ecosystem where a well-functioning banking system is complemented by a deep and liquid capital market. There is much room for growth in the domestic debt market.
We no longer have conceptual frameworks for Economic management for very small economies. That is the market that we at Central Bank of Barbados are well positioned to claim as our own. We are already out of the boxes. We have a framework for anchoring our exchange rate by the use of fiscal policy to contain aggregate spending and imports.