NASSAU, BAHAMAS — The investment currency market could see stronger interest that could “rival” $100 million this year, according to Central Bank Governor John Rolle.
Rolle, who was addressing a CFA Society of The Bahamas meeting yesterday, said: “That is because we have reformed the system so Bahamians could establish trading accounts with the local trust companies and also gave them the flexibility in that process to buy and sell within the portfolio, and that was a major change.
“The flexibility has been attractive in giving Bahamians more access to portfolio investment through the investment currency channels.
“Those same channels exist for those looking at investing in visual assets or cryptocurrency.”
He later told Eyewitness News: “For 2019, we saw nearly a doubling to $50 million in actual transactions, against approvals of almost $70 million.
“We project that the market was on track in 2020 to show interest of almost $80 million in 2020, if not for the moratorium.
“We do expect stronger interest which could “rival” $100 million in 2022.”
Rolle also noted that there will be spillover impact from the war in Ukraine on The Bahamas.
“It is having an impact on fuel and other commodity prices,” said Rolle.
He added: “Fuel expenses are beginning to consume more of our foreign exchange. Fuel expenses also feed into costs in the travel sector.
“We anticipate that in the near term, we are going to be spending more of our foreigner exchange on fuel imports”
Rolle also noted, with regards to the financial services sector: “We are exposed to sanctioning regimes in the European Union and North America.
“We cannot ignore those processes because banking on an international basis is an interdependent relationship.
“There are some transactions which our domestic and international institutions have to adhere to at a minimum in order to have a stable correspondent banking relationship. A bank without a corresponding banking relationship is a bank that is not viable.”
