Barbados Reserves Near US$3 Billion as the Economy Grows 1.7%

Foreign reserves sit close to US$3 billion, about 25.5 weeks of import cover, as first-quarter output rises 1.7%.

Barbados is holding foreign reserves close to US$3 billion, equal to about 25.5 weeks of import cover, according to the Central Bank of Barbados, while first-quarter output grew 1.7%.

For a pegged economy, reserves in weeks of import cover are the health check that matters most, and 25.5 weeks sits comfortably above the three-month line that signals strain. It is the number that keeps the Barbados dollar's peg to the US dollar credible.

The 1.7% growth read is modest but positive, and it comes on top of the reserve position rather than at its expense, a combination the island has worked deliberately toward since its 2018 restructuring.

Figures are from the Central Bank of Barbados quarterly review.