Exchange Control

Capital Regime

In keeping with a commitment to review existing arrangements, towards achieving a gradual yet meaningful liberalization of Exchange Controls, the Central Bank has effected several further adjustments in the Exchange Control regime, with effect from 17th January 2006. These measures follow earlier adjustments introduced in May 1995 and September 2002, both of which provided for an increased delegation of authority to commercial banks over a broad range of current account transactions such as payments for imports, travel and services.

Unlike earlier initiatives, these new measures focus almost exclusively on the relaxation of certain capital account restrictions, with the specific objectives of providing enhanced opportunities for residents to participate in and finance investments overseas and at the same time address several of the recommendations in the Bahamas Stock Exchange Committee’s Report to the Government, on measures to deepen domestic capital markets. Details of changes to the capital account regime are set out in the document, Relaxing Capital Account.

Foreign Exchange