Critics accuse Barbados authorities of monetary financing
Government says it is using SDRs to buy bonds, while governor says purchases are legal
An opposition figure and an economist have charged that the Central Bank of Barbados is creating money to fund the government.
Prime minister Mia Mottley and her adviser have rejected these charges, saying that the central bank is using IMF special drawing rights (SDRs) to purchase government bonds.
Section 62 of the central bank law states that during “a public emergency”, the CBB can “purchase marketable securities issued by the government or any publicly owned institution on the primary
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