Exchange Control Relaxation Update
Published: Wednesday September 26th, 2018
RE: THE RELAXATION OF EXCHANGE CONTROL MEASURES
On 1st February 2018, the Central Bank of The Bahamas (‘Bank’) adjusted the buy and sell rate of the Investment Currency Market rate to 5% and 2 ½ % respectively from 12 ½ % buy and 10% sell rate. The Central Bank anticipated the concerns of investors, and has implemented a 12-month period to allow investors to repatriate capital at the old ICM bid rate. In this particular instance, the period runs from February 1st 2018 to January 31st 2019. Thereafter, the investor may repatriate their capital at the new bid rate of 2.5%.
Although, the Bank has implemented the one year period for repatriation of profits under the 10% bid rate, the Bank is not implying that investors should prematurely liquidate their investments in order to repatriate capital within the given time period. It is the Bank’s view that vis-a-vis having all capital immediately subject to the new ICM bid rate of US$1.000 = B$1.0025, the accommodation made to investors is significant, taken within the context of losses and/or gains that arise as a result of varying factors in markets, particularly investment markets.