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BOSS+ is a five-year security that the Government of Barbados is issuing.
BOSS+ bonds are sold at par (face value) and pay 4.5 percent interest per annum. That interest is paid in two instalments and is not subject to withholding tax.
While the maturity period for BOSS+ bonds is five years, they can be redeemed, without penalty, after 24 months.
You buy BOSS+ bonds at face value – the minimum investment is $500 and thereafter you can increase your investment in increments of $100 – and receive 4.5 percent interest per annum over the five-year maturity period. That interest is paid semi-annually, and is not subject to withholding tax. At the end of the five years, you get back your initial investment.
If you don’t want to hold your BOSS+ bonds for the full five years, you can redeem them, without penalty, after 24 months. You can also trade them on the secondary market through a broker, e.g. Royal Fidelity, NCB, SigniaGlobe. Another option is to sell your BOSS+ bonds to someone else.
First, because BOSS+ bonds offer attractive returns. They pay 4.5 percent interest per annum, a rate that is significantly higher than you get on savings accounts at financial institutions or for other comparable investments, and that interest is not subject to withholding tax. Interest is paid semi-annually, which means you begin to see a return on your investment in six months.
Second, because they are flexible investments. While BOSS+ bonds have a maturity period of five years, you have the option of redeeming them, without penalty, after just 24 months. You can also trade them on the secondary market at any time after you purchase them (except in the months when interest is paid).
And third, because they are a safe investment. Like savings bonds, BOSS+ bonds are protected from debt restructuring.
There’s another reason you should buy BOSS+ bonds, however. The money you invest in BOSS+ will be spent on projects that contribute to Barbados’ economic, social, and environmental development. For example, government will use it in its efforts to mitigate the impact of climate change – a benefit for each of us. That means that while you’re helping yourself, you’re also helping the country.
Because they offer an attractive interest rate, 4.5 percent per annum, investing in BOSS+ bonds will help your savings grow at a faster rate than if you left your money in a savings account. As an example, if you invest $2,000 in BOSS+, at the end of five years, you’ll have earned $450, as opposed to investing the same amount elsewhere with interest rates at .015 percent per annum and earning $15 before tax.
And because you receive interest twice a year, and that interest is not subject to withholding tax, you’ll have additional cash on hand, supplementing your income, in the event that you need it.
If you’re a Barbadian over 18, you can invest in BOSS+ either on your own, or jointly with someone else. You can also buy BOSS+ bonds in trust for your minor children.
Businesses, churches, and other organisations can also invest in BOSS+.
The money you invest in BOSS+ will be used on projects that contribute to Barbados’ economic, social, and environmental development. For example, government will use it in its efforts to mitigate the impact of climate change - a benefit for each of us. That means that while you’re helping yourself, you’re also helping the country.
And the attractive returns it offers, 4.5 percent interest per annum, will help boost your savings or supplement your income.
You can buy BOSS+ bonds any time that there is an issue open.
You can buy BOSS+ bonds from the Central Bank of Barbados. Email us at publicdebt@centralbank.org.bb.
To buy BOSS+ bonds, you’ll need to complete an application form, which is available on the Central Bank of Barbados’ website. Submit the application in person or via email to publicdebt@centralbank.org.bb and make your payment. Here are your payment options:
The minimum investment is $500. Thereafter you can buy in increments of $100.
Yes. However, you must purchase the bonds in your name, “in trust for” your minor children.
Yes. You pay the face value for the bond and receive 4.5 percent interest per annum on that amount. And the interest you get is not subject to withholding tax.
Yes. You can purchase BOSS+ bonds jointly with up to two other persons.
No. There is no maximum investment apart from what is available when you apply.
You will need to complete a new application each time you want to purchase BOSS+ bonds
There are several ways you can pay for your BOSS+ bonds:
You will get an e-statement confirming your holdings when you purchase your bonds. You will also get an updated statement each time you make a purchase or a sale from your account.
You will need to purchase your BOSS+ bonds directly from the Central Bank.
Yes. Your credit union can issue a draft payable to the Central Bank on your behalf. And once you start to receive interest on your BOSS+ bonds, it will be lodged to your credit union account.
You’ll receive interest on your investment twice a year (on February 28 and August 31), and the principal will be repaid when the bonds mature in five years. If you choose to redeem your BOSS+ bonds early (after 24 months), you’ll receive your principal back at that time.
Both the bi-annual interest payments you earn and the principal will be credited to your account.
No. You’ll need to complete a new application each time you want to buy bonds.
You can sell your bonds on the secondary market through a broker, e.g. Royal Fidelity, NCB, SigniaGlobe. You can also sell them directly to someone else.
The price at which you sell your BOSS+ bonds will be based on negotiations with the buyer or at the market value based on the listed price on the Barbados Stock Exchange.
You can sell your bonds at any time after you buy them, except during the months when interest is scheduled to be paid (February and August).
If you wish, you can redeem your bonds 24 months after they are issued instead of waiting the full five years. Before then, you will need to sell your bonds on the secondary market, or trade with another person.
You can’t see your bonds to the Central Bank. If you want to sell your bonds before the 24-month early redemption period, you can go through a broker, and they will facilitate the sale. You won’t need to find a buyer.
Once your BOSS+ bonds mature, your account will be credited with the principal of your holdings.
You won’t be penalised if you redeem your BOSS+ bonds after 24 months. To do that, you will need to send written correspondence indicating that is what you wish to do at least one month prior to the early redemption date.
Yes, they can.
No. You can buy whatever value of BOSS+ bonds you’d like as long as that amount is available.
The high production cost for one cent coins meant that the Bank must spend significantly more to mint the coins than they are worth. In addition, because one cent coins are usually thrown away or accumulated in homes, the Bank had to issue large volumes of one cents to maintain an adequate supply in circulation.
The Bank therefore decided to stop issuing the one cent as a cost-saving measure. It is estimated that this will result in savings of BBD1,000,000
In preparation for the withdrawal of the one cent coin, the Bank drafted a set of rounding guidelines for handling cash transactions.
Under these guidelines, the prices of individual items does not need to be altered. At the checkout, however, for cash payments only, the total of all the items to be purchased will be rounded up or down to the nearest .05. Totals ending in .01 or .02 will be rounded down to .00. Similarly, totals ending .06 or .07 will be rounded down to .05. Conversely, totals ending .03 or .04 will be rounded up to .05, and those ending .08 and .09 will be rounded up to .10. The maximum gain or loss for any single transaction is .02.
Non-cash transactions, e.g. those made using debit or credit cards or by cheque, will not be subject to rounding as exact payment can be made.
Yes. The one cent remains legal tender, so consumers can continue to use one cents at businesses that accept them.
If a business continues to accept one cent coins and the customer has exact change, the total does not need to be rounded.
Barbadians can continue to deposit one cents at their commercial bank or credit union. Barbadians should consult their financial institutions in advance to determine how best to make deposits.
The one cent will remain legal tender, so financial institutions and retailers are free to continue to accept them indefinitely.
At present there are no plans to phase out the five cent coin.
Yes. Read the regulations related the one cent withdrawal and the rounding policy.
No. The prices of individual items should remain the same. The rounding policy applies only to the total cost of the items.
Transactions that do not involve cash do not need to be rounded since payment can be made for the exact total.
A Regulatory Sandbox is a controlled environment where businesses can test their innovative financial products, services, business models, and delivery mechanisms, in a live environment, while being closely monitored by regulators.
A Regulatory Sandbox allows regulators to gain a better understanding of the product or service and to determine what, if any, regulation is necessary to protect consumers.
For businesses, a Sandbox presents an opportunity to test the viability of their product, service, etc. on a small scale, and allows them to detect and address any issues before the product or service is offered on a wider scale.
Businesses offer their innovative products and services to the public on a small scale, while being closely monitored by Regulators. Regulators monitor the activity and determine if the product or service should be regulated.
FinTech innovations can differ significantly from traditional financial services, so there can be some uncertainty on how they should be regulated. By allowing businesses to test their products and services within the controlled live environment of a Regulatory Sandbox, the CBB and FSC, as Barbados’ financial regulators, will be able to determine whether existing regulations are sufficient to protect consumers, or if new legislation is needed.
The Regulatory Sandbox is intended for businesses testing technology-based financial products and services.
The duration will vary based on the nature of the product or service being offered by the business.
A regulatory Sandbox is a controlled environment where businesses can live test their innovative financial products, services, business models, and delivery mechanisms while being closely monitored by regulators.
A Sandbox allows regulators to gain a better understanding of the product or service and to determine what, if any, regulation is necessary to protect consumers and the financial system.
For businesses, a Sandbox presents an opportunity for them to test the viability of their product or service on a small scale, and allows them to detect and address any issues before the product or service is offered to a wider audience.
Businesses offer their innovative products and services to the public on a small-scale basis, while being closely monitored by regulators. Regulators keep track of the activity and determine whether the product or service is viable as well as if and how it should be regulated.
Being in the Sandbox allows businesses to discover and address any regulatory concerns early in the life of the product or service, thereby avoiding the possibility of major regulatory issues being discovered after the product or service has been offered on a wider scale.
To be eligible to participate in the Regulatory Sandbox, the product or service being offered by the business:
Yes. Businesses hoping to participate in the Regulatory Sandbox are required to pay the applicable fees, which will be used to cover regulatory and administrative costs.
The application process includes two major steps. The business must:
The duration of a business’ participation in the Regulatory Sandbox will be determined by a Regulatory Review Panel (RRP) based on the nature and complexity of the product or service.
Based on issues or concerns that emerge during testing, the RRP may extend the time beyond what was originally anticipated. A business can also request to have the time extended.
Once a business has successfully completed testing in the Sandbox, the RRP will issue a report that outlines how the product or service performed during its participation in the Regulatory Sandbox.
At present there are no plans to phase out the five cent coin.
Transactions that do not involve cash do not need to be rounded since payment can be made for the exact total.
No. The prices of individual items should remain the same. The rounding policy applies only to the total cost of the items.
Yes. Read the regulations related the one cent withdrawal and the rounding policy.
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EXCHANGE CONTROL is a set of procedures which assists the Government in directing flows in the best interest of its balance of payments on international transactions.
The BALANCE OF PAYMENTS is a systematic record of all financial transactions between the residents, including the Government, of one country and those of other countries. The BALANCE OF PAYMENTS is said to be ADVERSE (in deficit) if payments abroad exceed receipts from abroad. It is said to be FAVOURABLE (in surplus) if receipts are in excess of payments. The item which mostly influences a deficit or surplus position is the net payment or net receipt on account of goods and services. A deficit in the BALANCE OF PAYMENTS, which represents a temporary imbalance, is usually financed by drawing down the country's foreign exchange reserves and is supplemented, if necessary, by short term external borrowing. A more fundamental deficit, one which is persistent and severe, requires corrective measures aimed at increasing output and exports and reducing imports in respect of goods and services, since over a given period we may import more goods and services than we export, the Central Bank maintains a RESERVE OF FOREIGN EXCHANGE to cover any temporary imbalance. This FOREIGN EXCHANGE RESERVE is maintained in the form of international trading currencies such as Sterling and US dollars or investments in such currencies held with the Central Bank's correspondents abroad.
The EXCHANGE CONTROL AUTHORITY in Barbados is the Minister of Finance. However, the Minister of Finance has delegated much of his authority to the Central Bank of Barbados, which sees that the provisions of the EXCHANGE CONTROL ACT, CAP 71 are carried out. The Central Bank in turn, delegates some of its authority to Authorised Dealers and Authorised Depositaries.
AUTHORISED DEALERS assist the Central Bank by handling most of the transactions made in foreign currencies or gold bullion. Only AUTHORISED DEALERS may legally hold and deal in foreign currencies and gold bullion. They act on behalf of the Central Bank and must submit returns to the Central Bank on whatever transactions they carry out. Barbadians may accept foreign currency in return for goods and services. However, they cannot legally exchange that currency for Barbados dollars or any other currency except through an AUTHORISED DEALER. See list of AUTHORISED DEALERS and AUTHORISED DEPOSITARIES.
No, unless permission has been obtained from the Central Bank. All persons resident in Barbados must hand over to an Authorised Dealer as soon as possible, all FOREIGN CURRENCY or GOLD BULLION which comes into their possession for conversion into local currency at prevailing rates of exchange. In instances where the holder has a foreign currency account (link to circular #5), this foreign currency can be deposited to their account.
By FOREIGN CURRENCY, we mean the currency of a country other than Barbados. It includes notes and coins, cheques, drafts, money orders, bills of exchange, letters of credit and balances with foreign banks. Barbados dollars credited to or held in an External Account with an Authorised Dealer are treated on the same basis as FOREIGN CURRENCY.
GOLD BULLION is unwrought gold, usually in the form of ingots. Dealings in gold come under the same regulations as dealings in foreign currencies. The importation of gold requires Exchange Control permission. Such permission is normally given to those using gold in the manufacture of jewellery and for other industrial purposes. Residents are not allowed to hold GOLD BULLION; gold coins of foreign countries may be held for numismatic purposes only. Gold coins issued by the Central Bank of Barbados are, of course, legal tender in Barbados and may be used in the settlement of transactions and debts.
SECURITIES are defined in the Exchange Control Act Cap. 71 as shares, stocks, bonds, notes (other than promissory notes), debentures, debenture stock, treasury bills, units in a unit trust scheme, and shares in an oil royalty. SECURITIES denominated in foreign currencies are designated "FOREIGN CURRENCY SECURITIES".
There are NO RESTRICTIONS on transactions between residents of Barbados in respect of SECURITIES denominated in Barbados dollars.
However, the transfer of a Barbadian dollar security from a resident to a non-resident, or vice versa, requires Central Bank of Barbados’ permission.
Similarly, Central Bank’s permission is necessary where local companies issue SECURITIES denominated in Barbados dollars to non-residents. In the case of FOREIGN CURRENCY SECURITIES, purchase or sold by residents can only be made with permission of the Central Bank of Barbados.
In all cases where Central Bank’s permission is required, it should be sought by letter. Residents must deposit Certificates of Title to FOREIGN CURRENCY SECURITIES with an Authorised Depositary in Barbados or with his agent abroad. No person whether a resident or non-resident may buy, sell or otherwise deal in FOREIGN CURRENCY SECURITIES in Barbados except through an Authorised Depositary.
Yes, since February 28, 1974 when the Exchange Control Act, CAP 71 was amended to do away with the distinction between what were known as "Scheduled Territories" or, more commonly "the Sterling Area", and the rest of the world. As a result, transactions with residents of any country other than Barbados (referred to as non-residents) are subject to Exchange Control regulations.
For Exchange Control purposes, RESIDENTS are defined as:
All others are NON-RESIDENTS and include:
If you are not sure of your residential status for Exchange Control purposes, please consult an Authorised Dealer or the Foreign Exchange & Fund Management Department of the Central Bank of Barbados.
An EXTERNAL ACCOUNT is an account held in Barbados dollars with an Authorised Dealer in Barbados in the name of a non-resident.
Yes, if such foreign nationals have not resided continuously in Barbados for at least three years. However, their external accounts are treated differently from other External Accounts. For example, general permission has been granted to authorised dealers for net salaries earned by such foreign nationals to be credited to their accounts.
A FOREIGN CURRENCY ACCOUNT is an account denominated in a currency other than Barbados dollars e.g. U.S. or Canadian dollars. A resident, whether an individual or firm, a company, an association or institution, who wishes to open a FOREIGN CURRENCY ACCOUNT, must apply to an Authorised Dealer. The full amount of funds brought into Barbados by residents and non-residents can be maintained on their account. Payments from FOREIGN CURRENCY ACCOUNTS may be made without reference to the Central Bank of Barbados.
Subject to Central Bank’s approval, residents may also maintain FOREIGN CURRENCY ACCOUNTS with banks abroad, provided that Authorised Dealers in Barbados are not in a position to service such accounts. The Authorised Dealer forwarding the application must justify why such an account is necessary.
As long as the goods to be imported are covered by general or specific licence approved by the Minister of Trade, a local importer may freely obtain foreign currency for payment to an overseas supplier. However, before purchasing the foreign currency, an application must be made via Forex Online using FORM FC(1). The appropriate invoice and Customs warrant as proof that the goods have landed in Barbados and have been cleared by the Customs Authority must be submitted.
When advance payments have to be made before the foreign supplier will ship the goods, permission via Forex Online to purchase foreign currencies is required.
A CREDIT CARD is an instrument issued by an institution or its agent to an individual who then enjoys credit facilities to the extent of the limit agreed upon between the issuer and the CREDIT CARD holder. The CREDIT CARD holder may use these facilities in acquiring cash, goods or services in other parts of the world.
A DEBIT CARD is an instrument issued by an institution to an individual that is linked to an account and may be used to make payments for goods and services.
Residents are permitted to use CREDIT and DEBIT CARDS for travel services abroad to the extent of their authorised travel allowances; that is, BBD20,000 per person for holiday travel and for business travel, there is an allowance for BBD60,000 per calendar year or BBD1,000 per day.
Where the stated allowances are exhausted, permission for replenishment or an increase must first be sought from the Central Bank of Barbados using the CD Form through Forex Online.
NON-RESIDENTS may use locally issued credit cards on condition that the balance be maintained on an External Account or Foreign Currency Account to cover claims against the credit card.
Persons travelling abroad on holiday are allowed to purchase foreign currency up to the equivalent of BBD20,000 per person per calendar year. Barbadian residents travelling abroad on business are allowed to purchase foreign currency (at the rate of BBD1,000 per day) or BBD60,000 within a year. Individuals may travel with cash up to a limit of the equivalent of BDS$2,500 per person per trip. You are required to present a return ticket or approved travel documents. Business persons must, in addition, present a letter from their employer confirming that they are travelling abroad on business on behalf of the company. If you require more foreign currency for your trip than stipulated above, used up your travel allowance for the calendar year, or if you plan to combine private and business travel you must complete an application on Form FC (Not for Imports) for submission to the Central Bank of Barbados through Forex Online. Do not wait until the last minute before you try to obtain your foreign currency, this submission must be made within 30 days of travel.
If non-residents are meeting their travel expenses through an External Account, a Foreign Currency Account, or from funds which they had originally brought into Barbados, Authorised Dealers are permitted to sell them foreign currency for travel purposes to the limit of such amounts.
An application should be completed and submitted on Form FC (Not for Imports) via Forex Online.
Authorised Dealers have authority to approve remittances by residents without limit per person per academic year for maintenance of CHILDREN and DEPENDANTS who are BEING EDUCATED ABROAD, subject to:
Applications for the full amount for correspondence courses, (including the cost of books, apparatus and enrolment fees), accompanied by the relevant documentation should be submitted for approval using Form FC (Not for Imports) via Forex Online.
Central Bank of Barbados permission is required when travelling abroad to take Barbados Notes out on their person. Both residents and non-residents travelling abroad may take with them on their person up to the equivalent of BDS$2,500 in FOREIGN CURRENCY NOTES and COINS as part of their approved annual travelling allowance of BDS$20,000. The remainder may be taken in the form of drafts on foreign banks or other approved monetary instruments. Visitors, of course, are allowed to take out any foreign CURRENCY NOTES which they originally brought with them into Barbados.
There is no prohibition on any foreign CURRENCY into Barbados. Remember, however, that if you are a resident, you should surrender as soon as possible, any foreign CURRENCY which you may bring back from abroad to an Authorised Dealer for exchange into Barbados dollars. The exception to this relates to persons holding foreign currency accounts.
The Central Banks of Jamaica and Guyana have requested that under no circumstances should Jamaica and Guyana CURRENCY notes be encashed outside of their respective territories. E.C. dollar notes are freely exchanged by Authorised Dealers. It should also be noted that currency notes of Trinidad & Tobago are not currently exchanged by Authorised Dealers in Barbados.
Yes. For a detailed list of other categories, see circular 18.
Residents seeking to make investments abroad require the permission of the Central Bank of Barbados.
Residents seeking to borrow abroad require the permission of the Central Bank of Barbados.
NON-RESIDENTS are allowed to bring foreign exchange INTO BARBADOS through a financial institution, to engage in lawful business or invest in Real Estate, Loan Capital or Equity
To register foreign funds, NON-RESIDENTS should take the following steps:
Permission is required from Central Bank of Barbados for the purchase of REAL ESTATE situated in Barbados. Such permission is usually granted when the NON-RESIDENT purchaser remits funds into Barbados to cover the entire cost of the property concerned. The purchase price must be paid and received in Barbados. NON-RESIDENTS are not normally allowed to borrow for financing such purchases.
However, Barbadian nationals, even though they may be NON-RESIDENTS, are given permission to borrow in Barbados to acquire residential property.
NON-RESIDENTS and firms or companies controlled either directly or indirectly by NON-RESIDENTS require Central Bank’s permission to BORROW or to obtain credit or mortgage loans from a LOCAL source.
Transfer of LEGACIES and inheritances due to beneficiaries who were NON-RESIDENTS at the time of death of the benefactor is permitted on the presentation of the relevant documentation. An application on Form FC (Not for Imports) should be submitted to the Central Bank of Barbados via Forex Online along with the following:
(*) These documents relate to where the sale of property is involved as part of the transaction.
There are NO RESTRICTIONS on transactions between residents of Barbados in respect of SECURITIES denominated in Barbados dollars. However, the transfer of a Barbadian dollar security from a resident to a non-resident, or vice versa, requires Central Bank of Barbados’ permission. Similarly, Central Bank’s permission is necessary where local companies issue SECURITIES denominated in Barbados dollars to non-residents. In the case of FOREIGN CURRENCY SECURITIES, purchase or sold by residents can only be made with permission of the Central Bank of Barbados. If a resident already holds FOREIGN CURRENCY SECURITIES registered in Sterling Area countries prior to March 1, 1974 or is already in possession of FOREIGN CURRENCY SECURITIES on becoming a resident, permission for retention of such securities should be sought from Exchange Control without delay. In all cases where Central Bank’s permission is required, it should be sought by letter in duplicate.Residents must deposit Certificates of Title to FOREIGN CURRENCY SECURITIES with an Authorised Depositary in Barbados or with his agent abroad. No person whether a resident or non-resident may buy, sell or otherwise deal in FOREIGN CURRENCY SECURITIES in Barbados except through an Authorised Depositary.
Barbadian nationals EMIGRATING to take up permanent residence abroad are allowed an initial remittance of BDS$250,000.00 for a family unit per annum. On the anniversary date of the initial approval, further remittances can be made at a rate of BDS$100,000 per annum. For this purpose, an application on Form FC (Not for Imports) must be submitted to the Central Bank of Barbados via Forex Online. The application should be supported by an Asset Declaration Sheet showing assets held in Barbados, and evidence that the applicant will be permitted to take up permanent residence in the new country.
Foreign nationals who have resided in Barbados and are proceeding to take up permanent residence abroad will be given similar treatment.
A Tax Clearance Certificate is issued by BRA detailing taxes due, payable and paid.
A Certificate of Clearance, also issued by BRA under the succession Act, section 28(3), is required for matters relating to the settlement of Estate.
Central Bank of Barbados’ permission must first be sought before setting up that business.