The Central Bank of The Bahamas (CBOB) is lifting its foreign currency investment suspension, which was imposed back in May.

The CBOB announced that it will reinstate its Bahamian Depository Receipts program (BDR) and the approval of applications to purchase foreign currency through the Investment Currency Market (ICM) to fund external portfolio and capital investments beginning October 1.

The CBOB had suspended access to the two facilities on May 4, 2020 to protect the country’s external reserves at the onset of the COVID-19 pandemic, when the main supplier of the country’s foreign currency, which is tourism, had been shut because of the pandemic.

Now, with tourism open and the country accessing foreign currency through several means, the banks will return access to foreign currency in earnest next month.  

The two programs facilitate residents’ purchase of foreign securities and… foreign real estate, provided application is made to the Central Bank and approved.

Annually, 5% of the country’s external reserves, not exceeding $35 million, is allocated to the participating broker/dealers.

Residents are permitted to buy & sell foreign exchange through the market at the respective premiums of 5.0% & 2.5% above the official foreign exchange rate.

Annual access limits will again apply beginning 1st January, 2022.