The Barbados Dollar is pegged to the U.S. Dollar at a fixed exchange rate set by the Central Bank of Barbados. As a result, the Central Bank must maintain adequate foreign reserves to guarantee the value of the Barbados Dollar.
The value of the Barbados Dollar is guaranteed by virtue of the foreign reserves held by the Central Bank of Barbados. 'Foreign reserves' refer to assets, such as cash and gold, held by the central bank of a given country.
In order to prevent uncontrolled outflow of capital and to protect the value of the Barbados Dollar, the Government of Barbados enforces exchange controls on the purchase of foreign currency.
When you use your debit or credit card outside Barbados, or purchase foreign currency at an authorised dealer, it triggers an outflow of foreign currency. This outflow of capital is subject to exchange controls.
Please note Barbados Dollar accounts are liable to the 2% Foreign Exchange Fee on foreign currency purchases. This also applies to credit and debit card transactions that require foreign currency to settle the payment. The fee is calculated on the Barbados Dollar value of the transaction.
Companies, firms and societies with a Foreign Currency Permit are exempt from exchange control. [1]
Exchange controls only apply to Barbados Dollar denominated bank accounts held in Barbados. They do not apply to Foreign Currency Accounts.
The Central Bank of Barbados delegates some of its authority to commercial banks for specific transactions, up to prescribed limits.
In order to facilitate day-to-day business, various allowances and exemptions are published in Exchange Control Circulars. For example, there is an annual travel allowance of BBD $20,000 for individuals. For business travel, the annual allowance is BBD $60,000 determined at a rate of BBD $1,000 for each day of required overseas travel. For example, if a business traveller needs to go overseas for 30 days, their commercial bank will be permitted to release foreign exchange of BBD $30,000 without reference to the Central Bank.
Most commercial banks in Barbados that issue Visa / Mastercard debit or credit cards which support foreign currency purchases automatically make available the personal travel allowance to allow customers to make foreign currency purchases at home and abroad.
The purpose of the exchange control regime is to protect the fixed exchange rate, because excessive outflows caused by speculation or capital flight could collapse the economy and wipe out everyone's income and savings. However, the Government of Barbados has acknowledged the growing consensus that the island should abolish exchange controls in the long-term.
The Central Bank is cognisant of the fact that persons may require foreign currency for any number of reasons. The various allowances and exemptions do not necessarily represent the limit as to the amounts of foreign currency that a person can obtain, or the permitted reasons for which foreign currency is required.
Travelling overseas with a Barbados Dollar account? Check your foreign currency limit with your bank. For most individuals, it's $20,000 BBD per year, in equivalent foreign currency. If your limit runs out while overseas, you WILL NOT be able to use your debit or credit card outside Barbados.
Always keep an eye on your foreign currency limit, and use the FOREX Online platform to request a replenishment at least 7 days before you anticipate running out. You can be stranded for several days without the ability to pay for anything if your limit runs out while overseas.
In the event that you exceed your annual allowances or if the proposed transaction is not covered by one of the exemptions provided by the Central Bank, you will need to submit a foreign exchange application for approval via the FOREX Online platform. Depending on the nature of the application, it will be sent either to your commercial bank or the Central Bank for approval. You should only apply for the foreign exchange that you reasonably need.
Each application is reviewed on its merits, but there is an expectation of the Central Bank to approve all reasonable applications in the interest of maintaining the confidence of Barbadians and foreign nationals doing business in Barbados.
If your application is approved, you should contact your commercial bank referencing the application number provided by the Central Bank. Typically, you would need to e-mail your local branch so they can make the necessary adjustments to your account.
In the unlikely event that your local branch fails to make the necessary adjustments to your account within a reasonable period of time after you contact them about your FOREX approval, you have the right to lodge a complaint against your commercial bank with the Supervision Department of the Central Bank by e-mailing [email protected].
You may also wish to contact the Foreign Exchange Department of the Central Bank, as they may be able to provide contact details for a designated person at your commercial bank, especially if you are overseas with an urgent FOREX application. To contact the Foreign Exchange Department, call +1 (246) 436-6870 or e-mail [email protected].
[1] Companies, firms and societies in receipt of a valid Foreign Currency Permit are exempt from exchange control pursuant to Section 9 of the Foreign Currency Permits Act, 2025.