NASSAU, BAHAMAS — The Central Bank yesterday announced that it has lifted its suspension on the Investment Currency Market (ICM) that allows locals and residents to invest in international securities and real estate.
The Central Bank had suspended the ICM market at the height of the pandemic to protect the country’s foreign currency reserves. The move had halted between $50 and $100 million in foreign currency outflows.
According to the regulator’s Monthly Economic and Financial Developments report for July, the country’s external reserves grew by $36.7 million to $2,612.8 million during the month of July, a turnaround from the $45.5 million reduction in the previous year.
The regulator said in its notice yesterday that ICM market and the Bahamian Depository Receipts (BDR) programme, which had also been suspended, will once again be accessible beginning October 1. The BDM program facilitates pooled investments in foreign securities.
“Participants in the BDR program are advised that access will be prorated to the fourth quarter, beginning October, of 2021. Annual access limits will again apply beginning 1st January, 2022,” said the regulator.
Late last month, the Central Bank received a $247 million boost to its external reserves through a special International Monetary Fund (IMF) facility.
The Central Bank said at the time that in an effort to assist countries in their response to the COVID-19 shock, the IMF had allocated $456 billion in Special Drawing Rights (SDR) to its entire membership of countries, in proportion to their shareholding.
Those SDRs, equivalent to US$650 billion, can be used unconditionally. The Bahamas received an allocation of SDR $174.8 million.
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