Business
Independent Senator Calls for Reevaluation of Foreign Exchange Fees on Online Transactions
Independent Senator Lindell Nurse advocates for revisiting the foreign exchange fee on online transactions, citing its diminished necessity and impact on import costs, amid improved financial stability in Barbados.
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Originally published by barbadostoday.bb (opens in new tab)
Independent Senator Lindell Nurse has urged the government to reconsider the foreign exchange fee on online transactions, arguing that it has outlived its usefulness and is a burden on the cost of imports.
In a debate Wednesday on the Financial Institutions (Amendment) Bill, Senator Nurse said that the fee, which was implemented by the Democratic Labour Party administration in 2017 to reduce the amount of foreign currency spent by Barbadians on international goods and services, has already served its purpose given that the country’s finances are now in a more stable position.
He said: “The foreign exchange fee was introduced at a time when there was real difficulty in foreign reserves. I would have thought that the idea was to try to reduce the demand for use of foreign currencies and also to put a damper on trading in these foreign currencies.
“We have heard from the Governor of the Central Bank, that since then, things have improved substantially in terms of our foreign reserves balances and so on and that the government’s finances are in really good shape. I would suggest now an opportunity at this time could be taken to look at that fee and see if it can be removed. Therefore also helping to reduce the price of goods that is now paid by consumers.”
Given the high cost of living, Senator Nurse said the improved economic climate should also be reflected in the exchange fees that citizens continue to pay.
He told the Senate: “Of course, it has implications for the overall cost of products which are brought into Barbados and traded locally, and of course, it has implications for the number of people now who go and do their shopping online, [or] overseas at all of the various places across the globe. I would like to think that the time has come when the government perhaps should take another look at it.
“It’s not my recommendation alone; I’ve seen where the IMF itself has suggested that government should look at it and consider removing it. I hope maybe we will hear something in the upcoming Estimates Of Revenue and Expenditure budget debate, that something good is going to happen in that area.” (SB)
