10 things you should know about the 2% Foreign Exchange Fee
Created : 13 July 2017
The Central Bank of Barbados has begun its public education programme on the Foreign Exchange Fee (FXF) to be rolled out from July 17, 2017.
Acting Deputy Governor Michelle Doyle-Lowe explains some key points in a new video released Wednesday by the Central Bank of Barbados.
Here are 10 things you need to know about the FXF:
1. The FXF will be 2% and will be charged at the point of sale on transactions using foreign exchange.
2. The fee applies to any form of foreign currency (US dollars, pound sterling, etc) transaction whether in cash, drafts, wire transfers or by credit/debit card.
3. Credit card transactions for foreign purchases billed in Barbados dollars will still be subject to the FXF.
4. The FXF will be rolled out in two phases. From Monday, July 17 for all purchases of foreign cash, wire transfers and bank drafts and from Friday, September 1, for all credit, debit and prepaid travel card transactions.
5. If you cancel a foreign exchange purchase on your credit card and are being refunded by the merchant, you are entitled to a refund of the FXF charged.
6. The 2 percent fee will be applied to the Barbados dollar value of the foreign currency transaction and will be clearly stated on transaction receipts.
7. Both residents and non-residents using foreign exchange are required to pay the FXF.
8. 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. The full list of exempted entities is available at www.centralbank.org.bb.
9. Transactions that inject foreign currency into the system will not attract the FXF. For example, if you are bringing foreign currency to the bank to change into Barbadian currency, you will not be subject to the FXF. Similarly, receiving a wire transfer from abroad will not incur the FXF.
10. Foreign exchange limits for individuals remain the same, but the cost of the foreign currency will be affected as it will attract the FXF.
Watch the full feature from the Central Bank here: