Central Bank of Trinidad and Tobago
The monetary authority and financial-stability institution of Trinidad and Tobago.
Last updated August 25, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
The Central Bank of Trinidad and Tobago (CBTT) is the country's central bank and monetary authority. Established by an Act of Parliament on 12 December 1964, it became only the second central bank created in the English-speaking Caribbean, after the Bank of Jamaica. Its creation consolidated monetary responsibilities that had previously been divided among the British Caribbean Currency Board, the Ministry of Finance's Exchange Division, and the overseas headquarters of foreign commercial banks. The Bank has exclusive authority to issue and redeem Trinidad and Tobago currency notes and coins. It designs and protects the integrity of the currency, maintains adequate supplies for the public, and supports confidence in the Trinidad and Tobago dollar. Its monetary-policy responsibilities include influencing domestic liquidity and interest rates, maintaining low and stable inflation, supporting an orderly foreign-exchange market, and preserving an adequate level of international reserves. Since the monetary-policy framework introduced in 2002, the repo rate has been the principal public signal of the Bank's desired interest-rate direction, supplemented by reserve requirements and open-market operations. CBTT also acts as banker to the government and to commercial banks, manages foreign-exchange reserves, administers elements of the foreign-exchange regime, and conducts economic and financial research. Its supervisory and regulatory role covers banks and other financial institutions, with the broader objective of protecting depositors, supporting orderly markets, and limiting systemic risk. The Bank's responsibilities expanded substantially after the financial-sector difficulties of the 1980s, when falling oil prices, recession, weak internal controls, and excessive real-estate exposure contributed to the failure of several non-bank financial institutions. The institution has periodically taken a developmental role in building national financial infrastructure. It participated in the creation of the Trinidad and Tobago Stock Exchange and the Unit Trust Corporation in 1981 and collaborated with financial-sector partners in establishing the Home Mortgage Bank in 1986. In 1993, it helped facilitate the combination of National Commercial Bank, Workers' Bank, and Trinidad Co-operative Bank into First Citizens Bank, a restructuring intended to protect depositors and strengthen the domestic banking system. The Bank is headquartered in the Eric Williams Financial Complex in Port of Spain. The complex includes the central bank auditorium and two prominent towers, one occupied by CBTT and the other by the Ministry of Finance. In addition to monetary policy, currency operations, supervision, and reserve management, the Bank has worked on payment-system reform, the government-securities market, credit information, financial literacy, and financial inclusion. It joined the Alliance for Financial Inclusion in 2013 and committed to developing a national financial-inclusion training and policy capability. CBTT remains an important public institution at the intersection of Trinidad and Tobago's energy-sensitive economy, exchange-rate management, financial regulation, and national development.
History
Before CBTT was created, Trinidad and Tobago's monetary arrangements were divided among several institutions. The British Caribbean Currency Board issued and redeemed currency, while foreign commercial banks' credit policies were largely directed from overseas and foreign-exchange matters were handled by the Ministry of Finance. The Central Bank Act No. 23 of 1964 brought currency, monetary-policy, and banking functions into a dedicated national institution. The Bank began operations in a period when Trinidad and Tobago was part of the sterling area and the local currency was convertible into sterling. The late 1960s and early 1970s required the Bank to respond to changes in the international monetary environment and domestic political pressure. After sterling was devalued in 1967, the Trinidad and Tobago dollar was adjusted to preserve its sterling relationship. In 1970, exchange-control administration was transferred to the Bank, sterling itself became subject to controls, and the currency's reference was shifted from sterling to the United States dollar at TT$2.40 per US dollar. A new Exchange Control Act replaced wartime regulations. The period's Black Power movement also contributed to pressure for greater local ownership of commercial banking, an institutional-development process in which the Bank participated. During the 1980s, the collapse in oil prices and the resulting recession created severe financial stress. Several non-bank financial institutions failed after weaknesses in internal controls and heavy exposure to real estate became evident. The Bank initially worked with commercial banks to provide short-term support, but later determined that the problem involved insolvency rather than temporary illiquidity. It used strengthened statutory powers to close five institutions in 1986 and subsequently intervened in Trinidad Co-operative Bank and Workers' Bank. Amendments to the Central Bank Act and the Financial Institutions (Non-Banking) Act in 1986 gave the Bank special intervention powers and established the Deposit Insurance Corporation as a subsidiary. The economic crisis also exposed limitations in the exchange and monetary framework. The Bank administered a dual exchange-rate and tightly controlled foreign-exchange allocation system known as the EC zero system. As these controls proved inadequate, the country moved toward an IMF and World Bank stabilization and structural-adjustment program, together with debt rescheduling arrangements. In the early 1990s, CBTT began a broad financial-sector reform program intended to liberalize finance and modernize prudential supervision. The Bank's developmental work included support for the establishment of the Trinidad and Tobago Stock Exchange and the Unit Trust Corporation in 1981. In 1986, it collaborated with commercial banks, insurers, the National Insurance Board, and the International Finance Corporation in creating the Home Mortgage Bank. In 1993, it facilitated the merger of National Commercial Bank, Workers' Bank, and Trinidad Co-operative Bank into First Citizens Bank, helping protect depositors and consolidate the domestic banking sector. A major later change was the monetary framework introduced in 2002. The repo rate became the primary instrument for communicating and implementing the intended monetary stance, while reserve requirements and open-market operations remained supporting tools. The Bank has continued to refine monetary operations, supervision, payments infrastructure, securities-market arrangements, and financial inclusion. In 2013 it became the 100th member of the Alliance for Financial Inclusion and made a Maya Declaration commitment concerning a national financial-inclusion training and policy institution. Today, CBTT combines traditional central-bank functions with broad responsibilities for financial stability, regulation, currency integrity, reserves, research, and national financial infrastructure.
- 2013
Alliance for Financial Inclusion membership
[1]CBTT became the 100th member of the Alliance for Financial Inclusion and made a financial-inclusion commitment under the Maya Declaration.
- 2002
Repo-rate framework introduced
[1]The Bank adopted the repo rate as its principal monetary-policy signaling and operating instrument.
- 1993
First Citizens Bank formed
[1]CBTT facilitated the merger of three indigenous financial institutions into First Citizens Bank.
- 1986
Financial-sector intervention powers strengthened
[1]Legislative amendments expanded emergency intervention powers, created the Deposit Insurance Corporation as a subsidiary, and supported the closure of five insolvent non-bank financial institutions.
- 1981
Financial-market institution building
[1]The Bank worked to establish the Trinidad and Tobago Stock Exchange and the Unit Trust Corporation.
- 1970
Exchange-control responsibility transferred
[1]The Bank took over exchange-control administration, and the currency peg moved from sterling to the US dollar at TT$2.40 per US dollar.
- 1967
Sterling devaluation response
[1]The Trinidad and Tobago dollar was adjusted alongside sterling after the pound was devalued, preserving the currency's sterling parity.
- 1964
Central bank established
[1]The Central Bank Act No. 23 of 1964 established CBTT on 12 December, making it the second central bank founded in the English-speaking Caribbean.
Products and positioning
National central bank, monetary authority, and financial regulator
Currency · 1964
Trinidad and Tobago dollar
CBTT is the only institution authorized to issue Trinidad and Tobago banknotes and coins. It oversees currency design, redemption, supply, and integrity, supporting public confidence in the national currency.
Central banking · 2002
Monetary-policy operations
The Bank uses the repo rate as its principal policy signal and operating instrument, alongside reserve requirements and open-market operations, to influence liquidity, interest rates, inflation, and foreign-exchange conditions.
Financial regulation · 1964
Financial supervision
CBTT supervises banks and relevant financial institutions, applying prudential and intervention frameworks intended to protect depositors, contain systemic risk, and promote stability.
Marketing campaigns
- 2013Maya Declaration financial-inclusion commitment
Trinidad and Tobago
CBTT committed to transforming its national financial-literacy program into a national training institute for financial inclusion and to developing a national strategy with public and private stakeholders.
Brand decisions
2002
Adoption of repo-rate monetary frameworkStrategyBackground
The Bank continued modernizing its monetary-policy framework after the financial and exchange-control difficulties of the 1980s and 1990s.
Action taken
CBTT made the repo rate its principal instrument for signaling the desired direction of commercial-bank interest rates.
Aftermath
The framework provided a more market-oriented channel for monetary-policy communication and implementation.
1993
Facilitation of First Citizens Bank mergerM&ABackground
Three indigenous financial institutions required restructuring following earlier banking-sector stress.
Action taken
The Bank facilitated the merger of National Commercial Bank, Workers' Bank, and Trinidad Co-operative Bank.
Aftermath
The transaction created First Citizens Bank and was intended to protect depositors and reduce risks to the banking system.
1986
Intervention in insolvent non-bank financial institutionsStrategyBackground
An oil-price downturn and recession revealed insolvency, weak controls, and real-estate concentration among several non-bank financial institutions.
Action taken
CBTT used strengthened statutory powers to close five institutions and support depositor and creditor protection.
Aftermath
The episode led to stronger intervention provisions and the creation of the Deposit Insurance Corporation as a subsidiary of the Bank.
Sources2 sources
Cite this profile: Cite the canonical profile. /brand-wiki/central-bank-of-trinidad-and-tobago · Editorial policy · How profiles are compiled