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The Central Bank of Barbados is reminding Barbadians that the two percent (2%) fee on foreign purchases and payments made using credit, debit and travel cards goes into effect from Friday, September 1, 2017.
The Foreign Exchange Fee (FXF) is applicable to purchases made while overseas, as well as to items purchased from companies outside of Barbados, e.g. Amazon. However, if transactions are cancelled, the fee is refundable.
The Bank explained that the fee will be calculated on the Barbados value of the transaction using the exchange rate on the date that the transaction was processed, not on the date that the bill is paid and will be applied even if customers choose to be billed in Barbados dollars. This is because whether the transaction charge is executed in Barbadian or foreign currency, it is ultimately settled using foreign currency.
The FXF, which Minister of Finance and Economic Affairs, Christopher Sinckler, announced during the 2017 Financial Statement and Budgetary Proposals has been in effect on cash, bank drafts and wire transfers since mid-July. The Foreign Exchange Fee does not affect one’s annual foreign currency allowance.
For more information about the Foreign Exchange Fee, please visit www.centralbank.org.bb.