Understanding the Foreign Exchange Fee (FXF)

Date: 7/12/2017
Author(s): Central Bank Of Barbados

Created 12 Jul, 2017
Categories Economic Press Release Financial Advisory General Press Release
Views: 20965

Acting Deputy Governor of the Central Bank, Michelle Doyle-Lowe recently sat down with Public Affairs Officer, Novaline Brewster to discuss the new Foreign Exchange Fee (FXF) and how it will be implemented:

  • Highlights of the Interview:
    • The FXF will be introduced in two phases: July 17, 2017 for purchases of foreign cash, wire transfers and bank drafts and September 1, 2017 for foreign credit, debit and prepaid travel card transactions.
    • The FXF is 2% and will be calculated based on the Barbados value of the transaction. It will also be clearly stated on transaction receipts.
    • The FXF applies to purchases of foreign currency and payments for foreign currency transactions only, so persons selling foreign currency to an authorised foreign currency dealer, depositing it onto their account, or receiving wire transfers or bank drafts will not have to pay the FXF.
    • Credit card transactions billed in Barbados dollars will still be subject to the FXF.
    • Persons and entities (including entities in the International Business and Financial Services Sector) making payments from foreign currency accounts will not have to pay the FXF.

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