By Khrisna Russell
FREE National Movement Chairman Carl Culmer lauded the Minnis administration’s recently announced relaxation of exchange controls on capital and current trade account transactions for its benefits to students studying abroad.
The move, Mr Culmer said, will make it more affordable for Bahamian families with children attending college or university outside of the country by passing on savings of five to 10 per cent when money is sent in foreign currency to students.
On Tuesday, Prime Minister Dr Hubert Minnis said the relaxation would allow Bahamian owned businesses to maintain operating deposit accounts up to $100,000 in foreign currency at domestic commercial banks without penalty.
These changes are expected to come into effect as of February 1 next year, the prime minister said during a press conference at his West Bay Street office.
Mr Culmer said in a press statement on Thursday afternoon: “The new initiative that the Prime Minister announced will save these families five to ten per cent, eliminating another cost they are forced to pay while their children are at college preparing themselves to compete in the global economy.
“This is yet another step the FNM government is taking to provide more opportunities to all Bahamians that will directly benefit them and their families. This government is focused on making it easier and more cost efficient for businesses to operate, which will lead to higher paying jobs with long-term job security in The Bahamas, befitting everyone. We want Bahamian students studying abroad to have additional reasons to return home to start a career and raise a family.”
He continued: “The FNM government has shown it is committed to ensuring that it gets the economy back on the right track and makes sure that it is working for the Bahamian people. While the economy is showing early signs of improvement the work continues to uplift the entire country.”
Dr Minnis on Tuesday also announced the buying and selling rates for the investment currency market (ICM) will be reduced from 12.5 per cent and 10 per cent respectively to five and two and a half per cent.
“If you have money abroad now you can bring that money back home, deposit it in Bahamian banks, banks here maintain that foreign currency that will have an impact on your foreign reserves, thus foreign reserves coming home,” Dr Minnis said when he was asked how the relaxation was expected to impact Bahamian businesses.
“What will also happen is Bahamians generally like to touch, feel and see their money. Their monies would now be under the jurisdiction and the legal profile of the Bahamian authority as opposed to foreign jurisdiction that you have no control of.
“Not only that, in terms of purchasing, you can purchase without having the bureaucracy of any delay in (the) Central Bank. You have the money available to you and you can utilise it.
“This is an initial step of liberalisation. We are going first with the business sector and we will look at the non-business sector. That’s what you call liberalisation, removing certain stages.”
Speaking to his administration’s commitment to helping small and medium-sized business, the prime minister said the government will make the legislative, regulatory and programmatic changes necessary.
Comments
TalRussell 6 years, 3 months ago
Comrade Red Shirts Chairman, just likes it's nearing the end we knows it for over-da-hill, it's getting to looks likes more about easing the controls for the wealthier supporters of the red party. Soon over-da-hill will become the home for the richer. The wealthy will settle in over-da-hill as poor residents along with the mom and pop shop operators be slowly pushed out and forced live and setup shops in the more affordable shantytowns. Comrades, we are witnessing a slow goodbye to the over-da-hill, as we knows it.. There has not been a single program or policy announced since May 10,2017 to enhance the living standards of the poor and near poor citizens...and lots to fatten the bank accounts certain red shirts class....all the poor got was xmas wraps for their outdoor water fountains...and fees of $50 to $700 per body payable before the morgue will be releasing the remains your loved ones. {You can't make this up}.
birdiestrachan 6 years, 3 months ago
This fellow sounds more and more like Trump. He sings his songs. It will benefit the poor. A masterful liar indeed. But it is all about the rich. Time marches on. he had better hurry.
ThisIsOurs 6 years, 3 months ago
What is Culmer doing? This is the strangest thing ever. He has a press conference to talk about the "CENTRAL BANK's" exchange control relaxation???
And what does he mean the "FNM" government? Can someone in the BAHAMIAN government please advise him what his role entails as chairman of a "political party" and that he is NOT in any form or fashion an extension of the BAHAMIAN government, neither as a strategist or a spokesperson. Go canvas some voters, have some party fundraisers, organize meetings, recruit members etc etc..
John 6 years, 3 months ago
I think it is a great move. Especially since the banks have started charging conversion rates on credit cards. And especially since everything at RBC has to be done online come 2018. If you own a business that generates a lot of US. Why put it in the bank on par with the Bahamian dollar, but when you draw US dollars you lose 1.25 cents on every dollar. The business can now deposit the money into their US account and pay their bills in US dollars. Bahamians involved in trade with companies like Amazon and Alibaba can also have funds deposited in the trade currency and not lose on the conversion. And of course this relaxation in regulations will have its negative drawbacks and make the work of the Central Bank more taxing.
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