THE CENTRAL BANK CONTINUES TO ENGAGE THE GOVERNMENT AND OTHER STAKEHOLDERS ON THE GRADUAL LIBERALISATION OF CAPITAL CONTROLS

Published: Friday December 22nd, 2017

In recent months, the Central Bank has engaged both the Government and the private sector on avenues for further liberalisation of exchange controls. The Bank is currently finalising a matrix of proposals for consideration by the Minister of Finance. These will include those measures already foreshadowed by the Prime Minister on December 20, 2017 and a review of certain administrative processes.

The Bank is mindful of the role that exchange controls play in safeguarding the stability of the currency, and will continue to provide the Government with advice on supporting reforms for a stable liberalisation process.

There continues to be a commitment to ensuring that the Bahamian dollar is maintained at one-to-one with the US dollar. This imposes an obligation on the Bank to ensure that the flow of foreign exchange remains adequate to also satisfy residents’ payment needs for imports of goods and services, without depleting the country’s foreign reserves.

Increased access to external investments must also allow the private sector to conduct its affairs without concern about the value of the domestic currency. Such a stable environment will continue to evolve from improvements in the state of public finances, and developments in the private sector that strengthen the economy’s ability to earn foreign exchange.

The Bank will engage with the private sector on these and other administrative issues related to exchange controls in a workshop early in 2018.

22 December, 2017