Instead of going to the Central Bank when they need more than $1,000 to travel Bahamians can now get up to $10,000 of foreign currency from their local bank.
In an effort to make foreign exchange more customer friendly, Exchange Control limits were raised yesterday and some restrictions softened.
Prime Minister Perry Christie also announced that Bahamians will no longer have to pay a premium on Employer Stock Option Plans (ESOP’s). Instead of purchasing them through the investment Currency Market at a premium of .25%, Bahamians will pay the same rate as their overseas counterparts up to $10,000.
He said thousands of Bahamian professionals work for offshore and foreign-based institutions which offer company shares at lower rates. Deputy Governor of the Central Bank, Wendy Craig said there are approximately 14 companies which offer such stock options.
Other changes to the Exchange Rules include an increase in the annual business travel allowance from $10,000 to $50,000 per person. As before, this does not apply to payments for imports.
The maximum annual allowance for gifts has been increased to $10,000 from $1,000 per person.
The sundry payments category, which provided for non-cash allowance limits of between $1,000 and $6,000 per transaction on a broad range of items and limited medical expense, alimony and educational payments to the amount being paid, will be increased to $25,000 in almost all cases. And it is no longer necessary to get special approval to make educational support and other miscellaneous payments for up to $2,500. per transaction.
The credit card allowance has been increased from $10,000 per transaction to $25,000.
Non-oil imports – which account for the bulk of outward payments – will carry a maximum transaction limit of $500,000 per invoice at banks, up from $100,000.
The limit on the amount of money that can be taken out of the country at official rates of exchange for emigration purposes increased from $25,000 per emigrant to $125,000. Requirements exceeding this limit will be evaluated on a case-by-case basis instead of being automatically blocked for four years.
Limits on overseas investment have increased. Until yesterday an investor could exchange up to $100,000 or 0.30% of the investment cost, whichever was greater.
Now residents will be able to purchase up to $1 million per person or entity in qualifying investment projects at no premium, with an overall limit of $5 million per transaction. This will be possible once every three years.
Mr. Christie said this does not apply to offshore portfolio investments by Bahamian residents which will remain under existing Investment Currency arrangements.
The Prime Minister said the government recognizes this could be a successful tool in promoting Bahamians’ stake in key offshore economic activity, including the offshore financial services industry.
