PRESS RELEASE: Reinstatement of Investment Currency Premium for Purchases of Bahamas Government US Dollars Bonds

Published: Monday December 12th, 2022

On October 6th 2022, The Central Bank of The Bahamas (The Bank) announced a temporary waiver of the Investment Currency Market (ICM) premium (5%) for resident investors (including entities) applying to invest in Bahamas Government bonds denominated in United States dollars, and currently trading in the international capital markets. Since the waiver, the Central Bank approved a number of transactions valued at $201.6 million. Approved applicants must complete transactions on or before January 31st, 2023.

The Bank wishes to advise that application for the said waiver will cease to be accepted after 31st December 2022. Further, any ICM application received by the Bank on January 1st 2023, or thereafter, will incur the ICM premium of 5%.

The public is reminded that in order to participate in and to conclude ICM transactions, they are required to engage a local broker-dealer (commercial bank) or authorized agent (resident trust company). The securities purchased must be kept in accounts maintained in the custody of the same authorised institutions.

Investor applications for approvals may be submitted directly to the Central Bank, or via the authorised broker-dealers or trust companies, acting on behalf of the investor.

The waiver of the ICM premium on outflows would preclude any approved transactions from the partial ICM premium rebate on the capital, on the liquidation of the investment and repatriation of proceeds to The Bahamas.

December 12 2022