A member of the BU family messaged the blogmaster’s inbox to inform that Scotiabank and FCIB are placing hurdles for persons wanting to open USD Accounts. You will recall the government declared that effective August 2, 2019 Barbadians can open foreign currency accounts without restrictions.
Barbadians Can Hold Foreign Currency Accounts Without Restriction
The government is obviously trying to create an environment for Barbadians to bring hard currency into the island. Feedback indicates the two banks mentioned have decided to make it difficult to open a USD account. They are saying unless you are earning USD or receiving USD dividends they will not open a USD ACCOUNT for a Bajan.
There is speculation banks do not want to increase the expense line by paying additional insurance on a growing USD deposit portfolio. It is unfathomable Barbados is struggling to earn USD and there are entities generating distasteful profits in times of austerity inclined to put up hurdles to an initiative that would assist the country.
Is this payback for the haircut on bonds banks have had to suffer as part of the BERT program?
IF, and de ole man underscores that IF doubly, the government of Barbados truly wanted to dislodge these wicked banks THEY WOULD EMPOWER THE CREDIT UNIONS AND ERADICATE THEM FROM OUR LANDSCAPE.
But there is no real desire to stop this rampant rape
And having said that promotion for the credit unions vis a vis the pernicious banks WHU HAPPEN WID DE GUVMENT?
WHY DEM SO HUNGRY FUH US CURRENCY FROM BAJANS?
Wunna feel people Stoopid?
Warned yall about this latest government scam a while back…there are no good intentions there re US/foreignbank accounts, never were……they never plan to make anything easy for the majority population, none of them, another form of bondage..
The banks should LOSE every dollar of savings the people have in them…bajans are yet to realize that they are the ones keeping these banks open, without their money these parasites will have to shut shop and move on.
Where is the regulator?
And this COULD work out just as well for the banking system and the country… in Barbados if the wicked government in COLLUSION with the nasty criminal minorities were not so hellbent and intent in DISENFRANCHISING the Rasta Community…and ROBBING the majority population …OF EVERYTHING.
BTW…from last year i have been hearing that CRIMINAL TIEF Maloney responsible for the Holder child’s death at the entrance to Coverley has been running around the island purchasing or attempting to purchase cannabis oil to see WHO has started any medical marijuana business…like if it is his concern…tell ya nasty, tiefing criminal minorities…TO STEP THE HELL BACK… from this one Mia..
“Former drug dealers should be recruited and trained to produce safe, legal cannabis if the UK decides to legalise marijuana, the head of an American programme overseeing the sale of the narcotic has urged.
The Commissioner in charge of legal cannabis sales in Massachusetts has said Britain should follow her state’s example of recruiting ex-drug dealers and people from communities involved in what was once the underground market for marijuana.”
Only a TREACHEROUS black governemnt, so USED TO selling out their own people to minority criminals…CANNOT SEE THE VALUE…of allowing those who were ROBBED, CRIMINALIZED and beaten down repeatedly and FOR DECADES by 2 vicious colonial minded governments, just to line their own pockets……to carry the medical cannabis trade to it’s CORRECT and LOGICAL CONCLUSION..
but ya uppity, arrogant, CORRUPT, sellout asses WILL PAY TO LEARN….we are NOT our grandparents or parents…ya will not pull that shite and get away with it this time….not this time..
For those who are interested to see how a DUMB government can ROB the whole population on the island AGAIN for their minority BRIBER friends……AGAIN…leaving Black Bajans in POVERTY AGAIN….if not MONITORED AT ALL TIMES…., the whole article guiding governments on WHAT SHOULD BE DONE… can be found here..
The LIVES OF FUTURE GENERATIONS OF BLACK BAJANS…is DEPENDENT on EVERYONE…being made AWARE of their ENTITLEMENTS…re medical marijuana…
@Vincent, Sargeant, Miller, John A, fortyacresandamule, Norther Observer
Looking forward to reading your comments on this subject. What are some of the hidden challenges we maybe missing here.
The Banks May be leery of money laundering or crime related activities where someone with no visible means of US income tries to deposit US funds
That may also be a concern, but it is not the banks main concern, or government MINISTERS would not STILL be hiding BRIBE moneyiby the millions in theirs and their family members bank accounts…or TIEFING lawyers will would be STILL robbing clients and hiding the money in the banks in PLAIN VIEW…so that is not all that is going on here..
….or the TIEFING lawyers would NOT STILL be robbing THEIR clients and hiding the money in the banks in PLAIN VIEW…so that is not all that is going on here..
That is a very valid point especially considering the Pornville Incident.
Which is why they are making these preventing requirements.
My counter though has nothing to do with these Enablement BUT WITH “FUTURE DISABLEMENTS”
More specifically when in 9 months the same government reneges on this agreement AS IT HAS DONE WITH SAVING BONDS, and seizes peoples monies because “the country needs your US CURRENCY TO MEET CURRENT US PAYMENTS” or some sort of similar ripoff scheme!!!
The issue here is not the government, they have done their part to open the sector for USD deposits, it is now the dam banks that have decided they don’t want the expense of insuring the money.
Leave the dam politics out of the discussion for once in wunna lives and try and understand what is happening here.
In simple terms even though our PM has decided to allow us as a people to hold USD accounts, a bunch of foreign owned banks have gotten together and said that would be an added expense for us to insure these deposits, so Let us make the opening of these accounts as difficult as humanly possible.
If you recall the PM when she made the announcement said she would leave the details to the banks, BIG MISTAKE!
Government will now have to step in and ensure that these roadblocks are removed, so that as a country we can see the much needed foreign exchange held by Bajans deposited into the system. But we need to also do this so that the foreign owners of properties can also open USD accounts on the island. Imagine if they could do that and pay their Land Tax for example here from those accounts, instead of sending hard currency to the property management companies foreign accounts, who in turn keep it and then pay the said bills on their clients behalf here in BDS dollars! In other words let foreigners owning property here open a USD ACCOUNT on presentation of ID and proof of property ownership by a current land tax bill.
What this has brought home though is the need for our regualtors to make their prsence felt. If they were doing their dam job this issue would have been addressed by them and not now by us Here on BU. Here is a classic case of how a few directors sitting in their plush boardrooms in Canada, can now derail the efforts of a small island trying to recover financially. I await the firm intervention of the PM into this matter that will remind these pompous people that our state requirements are not request, but in fact conditions of their presence here!
Where s the dozy regulator?
That is my question too. How can they sit back and watch the recovery of their island be derailed by these foreigners in Canada? To say we are only opening USD accounts for people working for USD is a non statement. You don’t think people working for USD would not already have foreign USD accounts? In other words they are offering to open accounts knowing full well those people already have them.
Mr Blogmaster, is this post a joke or to use the Dean’s style: a moment of risible interlude!
Clarify for me the logic to the remark (1) “There is speculation banks do not want to increase the expense line by paying additional insurance on a growing USD deposit portfolio”
Is the supposed expense line not covered by the fees charged by the bank in holding those deposits…and then particularly the automatic forex exchange charges incured..I absolutely do NOT understand that speculation.
Also (2) how does SETTING up a forex a/c by itself help alleviate or assist the nation’s struggles “to earn USD”!
If you can clarify those for me then also explain WHEN did you EVER know that a bank or financial institution in this modern era of stringent money laundering regs (@Sargeant’s point) of large fines and possible LOST of license would allow ANYONE to create an a/c that is not vetted as a legal and legitimate income stream….so unless you are indeed receiving a salary in US$ or some form of investment gains or running a legal forex revenue business WHY would you want to open a US denominated a/c at any bank??
As I asked before is this post a joke! Actually @Pieces put it better “WHY DEM SO HUNGRY FUH US CURRENCY FROM BAJANS?…Wunna feel people Stoopid?”
Seriously David…the bank officers have a duty of care to the law and too to commonsense …how could they NOT act as noted above!
@ John A
It is legal for people to open the accounts, so foreign-owned banks operating in Barbados cannot second guess the government. Someone must have a word with them. Who in the central bank or government has the balls to? Where is the bogus banking code? Make the banking code mandatory. Turkeys do not vote for Xmas.
@Piece: “More specifically when in 9 months the same government reneges on this agreement AS IT HAS DONE WITH SAVING BONDS, and seizes peoples monies because “the country needs your US CURRENCY TO MEET CURRENT US PAYMENTS” or some sort of similar ripoff scheme!!!”
This is an opinion the I too expressed and am concerned about. Notice the strong armed tactics being employed to bully citizens into complying? Threats of forfeiture and lengthy jail terms. Ah, what a pleasure it is to live in a free and democratic country.
I agree with you for sure. The thing is these banks will not make the forex profit on these accounts. As you know they accustom taking your USD at BDS 1.98 and selling it back to you tomorrow at BDS 2.02. So they don’t want to lose that revenue by making your dollars available to you.
When I read excuses like ” they can’t take it because of money laudering” then pray tell how come I can walk into a bank in Miami or New York and they will take it? We look for every dam excuse why things can’t work here by first playing politics and if that fails playing ignorant.
I agree with you that the seizure of the hard currency by the state is a concern but I believe that fear can easily be availed by legislation. The concern now is that if these banks are allowed to get away with their roadblocks the risk of seizure will never arise to begin with. Plus hopefully investment opportunities will now develop through entities locally for hard currency deposit if this is allowed to grow. If it is blocked in its infancy we will never know where this could of taken us had it been allowed to.
So @John A, if as you state folks who legitimately need forex a/cs already have them (since forever in many cases) then WHO exactly is this govt’s push for broader use of forex a/cs aimed at?
What unserved sector of the Bajan citizens are going to be superbly enhanced by this wondrous new facility!
Is there so MUCH forex in the underground market that the Mottley govt expects will so decisively assist with our overall forex riitual number crunching!….And how does one move underground earnings into above ground bank deposits???
Please help me grasp this deep financial mystery !…or am I completely missing the plot here!
It is not just a case of underground money, stop and think about this. How many Bajans living abroad have either homes or land here? Right now how do they maintain these properties? Don’t you think if these people could open a USD ACCOUNT locally they would not then be able to pay their bills out of it? What about all the homes owned by foreigners here don’t you think the same would not benefit them? What about if say Mr Smith sold a piece of land to a foreigner don’t you think he too would not benefit from being able to deposit the hard currency too?
I as you know have cuss this government when they do foolishness, but this is a good move by them as it opens the doors for untapped hard currency to be now held In the island. It also if allowed to blossom will open opportunities for hard currency investment. If the same dam banks were not so short sighted they would be working on that instead. Who knows maybe a regionally owned bank like Republic will use this to acquire larger market share.
Plse have a look at the (un)intended consequences. If a foreigner is opening a bank account in Barbados, they will almost certainly get legal advice to get the account approved by the central bank; this means when or if they want to remove their money they can easily do so.
If an overseas Barbadian wants to open an account in Barbados, they walk in to a bank and set up the account, giving their overseas addresses, even if they use their Barbados passports as ID. If the account is not kept active, it will soon become dormant – and what hell to get it back as active.
But if they want to withdraw any of that money in foreign currencies they can with difficulty. There is still capital controls in Barbados which the foreign-owned banks enforce with enthusiasm. They will give you the limit and write it in your Barbados passport.
Overseas Barbadians with property, or hoping to buy property, are likely to fall in to the latter trap.
By the way, 20000 Russians had bank accounts in Cyprus when the island ran in to serious economic trouble. The government used that money.
Overseas Barbadians would be mad to transfer money from North America or Europe to a bank domiciled in Barbados unless they really have to.
Yes but remember what the PM said in parliament when this was enacted. She said ” it is their money so they put it in and take it out as they desire.” This would mean that the central bank would not be able to apply their garrison of red tape to these accounts. You would therefore have free access to what you have in the account. The PM was very clear on that.
The reason these banks are making this so difficult is that they currently make good money on selling us a USD so by holding ours that profit is gone plus now they got to insure it. So instead of simply implementing an annual fee for opening a USD ACCOUNT the plan is to block it.
“What about all the homes owned by foreigners here don’t you think the same would not benefit them?”
that facility has been available in Barbados for years, particularly for local and foreign businesses..
…Bajans in the Diaspora have to be very careful…all their account information will be available for the TIEFING lawyers and the minority thieves who sit on these multiple boards, including the banks, as directors…
millions of dollars have KNOWN to just UP and DISAPPEAR out of the accounts of a few millionaires domiciled in Barbados, whom they never thought would miss that much money cause some had upwards of 10 or more accounts…..
“This would mean that the central bank would not be able to apply their garrison of red tape to these accounts.”
As long as you DEC;ARE from 1 dollar to 100 million dollars with the central bank when you BRING the money into the island…ya can leave with one dollar to one hundred million dollars…that faciltiy has also been available in Barbados for years…..
@ John A (in this incarnation You have my total respect)
I unfortunately have not drunk the Mugsbe coolaid.
You said and I quote
“…I agree with you that the seizure of the hard currency by the state is a concern but I believe that fear can easily be availed by legislation…”
You mean the Constitution that Mottley changes as shd pleases to make a Canadian a Senator?
Or the legislation that says government bonds should pay 12% p.a and she changes and pays people 4%
And way forcing an almost 80 year old man to take that repayment in installments of 15 years WHDN THD MAN MIGHT BE DEAD?
Surely you are jesting!
But here is a reminder of how Mottley Cares for the citizens who voted for her, IN CASE YOU FORGOT
…..that facility of holding US or Canadian bank accounts…… has been available in Barbados for years, particularly for local and foreign businesses..
@ Mr Hal Austin
That’s precisely the point we are making here as you said and I quote
“…By the way, 20000 Russians had bank accounts in Cyprus when the island ran in to serious economic trouble. The government used that money.
Overseas Barbadians would be mad to transfer money from North America or Europe to a bank domiciled in Barbados unless they really have to…”
Right now Mugabe is refusing to pay international creditors with real clout and money!!!
Imagine if you were ingrunt enough to put your money in such an account AND MUGABE SEIZED IT!!
What would be your recourse?
Carry her to court?
In a cuntry where cases have not been heard for 20 years?
Any idiot who takes up Mugabe on this Scam DESERVES TO BE ROBBED OF THEIR MONEY, FUH REAL!!!
Yes I agree with both you and Hal that the risk of conversion to BDS dollars is a risk as occurred recently in Trinidad and other areas. So should the worst happen the $10000 USD could become $20000 bajan overnight, let us accept that. The thing is though if you were bringing it in for use in Barbados anyhow would this be a deterrent? I am not saying any sane person would put their life savings into one of these accounts. These accounts would be used for facilitation purposes mainly by Bajans. The main thing is once they are outside of the red tape of the central bank that is the major point. Another blogger here says the law is in place that you can move money in and out freely already through the central bank. No sir you can “apppy” to the central bank to move it out and depending on their situation reserve wise they will advise. Go and ask some who have applied to move large sums what has happened.
The issue here is that it is not in the banks interest to facilitate you holding a USD ACCOUNT. When you going New York they want you to come and buy THEIR USD at 2.02 not spend yours.
The mistake was made when the government said ” we will leave the banks to work out the details.”
Hal..i left a message for you on the Natalie blog.
@ David (BU):
It would be interesting to find out if the balances in these new foreign currency accounts would be included as part of the country’s foreign exchange reserves.
If so, it would make for good political optics in the reporting exercise undertaken quarterly by the Guv of the CB.
What Barbados needs now, more than any thing and time is for some of that ‘stashed’ forex to be spent locally in the construction/purchase of houses and in the support of small to medium business enterprises involved in commercial and manufacturing activities other than the traditional import/retailing forex burning sectors.
@John I agree with you that locally domicile foreign banks should never be allowed to frustrate the will of government but the concern expressed by Piece cannot be ignored. When a government holds 99.9% of the seats in parliament, cool aid and dark glasses will not preclude them changing the rules of the game whenever it suits them. Matter of fact, depositing money in a bank today is becoming more and more an exercise in futility.
My point to all is that we will never know the potential of what a move like this could generate if we are blocked from exploring it. The commercial banks and central bank red tape are 2 hurdles that need removing from the landscape of doing business. If people want to bring in their own USD then open the doors and let them decide if they want to run the risk or not. They must however have free access to these funds.
We can’t keep throwing up excuses for why ” it can’t wuk here” and then expect to ever get out of this hole we are in.
“Go and ask some who have applied to move large sums what has happened.”
i can only talk about those who have been successful in MOVING large amounts…the ONLY PROBLEM THEY EXPERIENCED ARE THE THEFTS FROM THEIR ACCOUNTS..
but i will no way be surprised if they gave depositors hell, depending on who they are or WHOM they are NOT connected to….OR the AMOUNTS they are moving..
In light of the rampant speculation about the reason(s) that the Banks have declined to open foreign currency accounts did your correspondent provide any more info? They must have told him/her why they wouldn’t, proceed and that’s missing from the conversation.
@ Fear Play
Agreed for sure. The thing that will make it interesting though and protect us here from this is politics and credit rating. Let’s work through it and tell me what you think.
The money held in these accounts will be on island and hence form part of the reserves, so that will make for good politics and a happy IMF. it would therefore be wise for the government not to touch those USD accounts.
Secondly a seizure of foreign accounts would not speak well for a country struggling to be seen as credit worthy and fighting to raise its credit ratings either would it?
So in a round about way the same issues that got us in this mess will now protect our USD in these accounts.
Lord you got to love a politician. Lol
@ Fear Play
Sadly it boils down to economics. The banks do not want to lose the foreign currency sales and profit nor do they want to increase their insurance cost on these accounts, seeing that they will be making nothing off of them. That reality is there for all to see.
Government needs to now step in and address these issues.
@John A, your colleague @Hal responded well to your queries so what’s left to add but the mundane: this ploy by govt is damn fishy! I am much less enamoured of the govts intent than you as I still do not know who is the audience intended to be captured nor how will they react down the road …as others have bluntly noted above.
I fall into one of your categories above and I have never really had difficulty facilitating local needs… for all practical and real terms the cost of opening a local US $ a/c and using other (legitimate) means to move funds do not appear overly beneficial to the former: Unless one has multiple properties and is doing extensive mods or ongoing significant update I see no particular benefit of the local US a/c.
As was noted in an earlier post and @Hal succintly also noted the issue of forigners doing busineess in Bim is a non-point in this debate because they ALREADY had a clear and legitimate reason to have a forex denominated bank a/c… THIS thrust could NOT be intended to capture that ‘revenue’!
As you know Central Bank authorized forex a/cs has been a central aspect of Bajan economic life for many years…
Similarly selling land is a non-issue. That is also a clearly well established dynamic…know enough folks who have been there and done dat without issue. (BTW, after paying legal fees and all that do u find it enjoyable to give the damn bank forex exchange fees simply because they handled the money…unless Ms Mottley is telling the bank that for ever US$ deposited I must get the equivalent withdrawal amount without forex buy/sell fees then what’s my benefit really?)
I have no issue with the policy itself…but just want to understand the real underbelly of it’s intent and benefits…if it’s a more complete offer to Bajans who travel often to manage their forex more easily then so be it….but to purport that it provides some exciting new opportunities re our “… [struggle] to earn USD” is difficult for me to grasp!
That suggestion alone suggests that the govt can then use this forex either as part of its description of forex reserves on hand and/or then proceed to apportion citizens’ forex (and supposedly give them BDS)…
…and neither of those thoughts make monetary govt operational sense, do they!!
So I ask again …to what avail and benefit goes the ploy??…what am I missing??
@ John A September 5, 2019 10:21 AM
“Yes I agree with both you and Hal that the risk of conversion to BDS dollars is a risk as occurred recently in Trinidad and other areas. So should the worst happen the $10000 USD could become $20000 bajan overnight, let us accept that. The thing is though if you were bringing it in for use in Barbados anyhow would this be a deterrent? I am not saying any sane person would put their life savings into one of these accounts. These accounts would be used for facilitation purposes mainly by Bajans. The main thing is once they are outside of the red tape of the central bank that is the major point.”
That’s a rather seriously big risk given the current state of affairs with the country’s overseas creditors.
The foreign creditors and suppliers want to be paid in foreign money not Bajan Mickey mouse monopoly money.
The overdraft-type forex ATM has been unplugged and Barbados must now earn foreign money in order to not only repay its loans but also settle with its suppliers of imported goods and services in order to live the big and easy life Bajans have grown accustomed to.
What do you think would happen when the Central Bank cannot find the foreign money to pay for the country’s oil or to meet its unnecessarily high food import bill?
Borrow from the same foreign creditors whom Persuad recently told to buzz off for the next four years?
One thing which needs to be highlighted in this move by government is the creation of the golden opportunity to make those who want to buy luxury vehicles with powerful engines (totally unsuitable for the Bajan makeover cart roads) pay for them with their own foreign currency from their own forex-earning accounts.
Oppps, I wrote /posted that 10:45 before I saw all that had gone prior…the points were made already by others…so tally-ho!
Every single USD that is obtained through the central bank is sold at 2.02 roughly. Each single dollar taking in by the banking system is taken in at 1.98. So on every single USD we the public pay a minimum of 4 cents to the “system” for the privilege of acquiring.
These USD accounts as the PM outlined will be free of the central bank regulations and limits. You will put in say $100,000 USD and have free access to the same $100,000 USD with it at no time being converted to BDS dollars. You will not be limited to x amount for holiday travel or y amount for annual credit card use for example. As she said ” it is your money so you can put it in and take it out as you like.”
As it now stands if you want $15000 USD for school fees abroad or $15 to buy a magazine, it goes through the central bank and a garrison of forms and red tape.
Now as for people saying you can sell a property and get paid in USD Once it comes through the central bank that is incorrect. Once the funds are registered by coming through the central bank previously 70 percent of the amount had to be converted to BDS dollars at entry. When people come here and make statements they are unaware many times of the small print.
The move by this government to facilitate the free movement of USD BY those who can generate it while having it domiciled in Barbados, is therefore a positive thing and should not be frustrated by a handful of Canadian bankers. Or do we prefer to continue to let bajans take it to Miami and deposit it there?
From our check a big part of the problem seems to be uncertainty about how the accounts should be operated. For example, should the holder need to withdraw full balance in foreign cash what?
Also money laundering mentioned before has come up as it applies to individuals wanting deposit unexplained funds.
A few other reasons were mentioned.
We have heard of the people in Toronto boardrooms conspiring against Bajans, what about the other Financial Institutions including the one that is named for the island and purports to be serving the interests of Bajans,are they rushing to fill the void?
What is being proposed is for those who can afford to be robbed…the banks are already not willing to cooperate…they know why.
Hants any of those options could work here if they wanted to make it work. Even if the banks went with a fixed yearly fee of say $100 to avoid the ” nuisance deposits” as they like to term it that is an option.
To try and stand in the way though is not an option!
Why doesn’t the govt stop pussy footing and abandone the mickey mouse BBD in favor of the USD?
Apart from issues of convenience, I’m not sure how all this tinkering at the margins will propel the economy forward.
The currency being US does not eliminate AML procedures. This is another example of the rabble trying hard to create a story.🤣🤣
Don’t be lulled into thinking that there isn’t a vast underground movement of US dollars in Barbados. It is highly unlikely that a drug dealer or someone wanting to pay for a shipment of firearms would walk into a bank with the intention of purchasing fifty thousand or a million US dollars in foreign currency. What mechanisms are they using to be able to harvest that quantum of US currency with such apparent ease?
They will find any excuse not to open these accounts based solely on one purpose and that is protecting their profit. They want to continue to profit from the sale of fx and that’s the reality. Although the PMs proposal is a good one it will be fought by the banks.
Ask yourself one question bases on the submission Hants made above. How come the same USD they don’t want to take here for all these so called reasons they will happily take if I walk into their head office bank in Canada? Actually not only will they take it but they will compete for it as the information Hants supplied shows.
How come not a single Canadian Bank published in the press their rates of deposit or annual fees for a locally opened USD account, even though approval was given months ago?
We need to start thinking for ourselves and leave the yardfowlism out the equation. The point is these guys have quietly decided to blank the government’s decision by simply placing walls in place.
Having said that I also blame the regulators here for not meeting with these offenders and putting in place what is required. So everybody got to hold blame here! As usual in the meantime the state and it’s people pay the price.
@ Fear Play
That is the point why these USD accounts are so important for protection of issues like drug dealing etc.
Let’s say it is legal AND simple for Barbadians to hold USD accounts. What then say if someone was caught with $100,000 USD in cash walking around say to the police. Officer don’t mind it’s 3 Am I going to the bank?
The current requirements for the account prior to the banks quietly introducing this last one, already cover proof of income . Large amounts say have to be accounted for if it is a property sale claimed, by a copy of the legal transaction. So all these so called excuses are already covered under the current requirements. This back door addition about having to be working for A USD salary by the banks is clearly an attempt of avoidance.
I will look for the requirements that the government outlined when the law was passed and forward so you can have a read. Basically every excuse and so called concern is covered under the guidelines outlined under the current law.
I am going to send the requirements to open an account to David as I don’t know how to post an attachment straight to the blog.
Thanks @ John A
“As usual in the meantime the state and it’s people pay the price.”
as i already OPINED…another form of bondage for the majority population…who should FIND other ways to store their money…SAFELY…away from thieves and the eyes of the COVETOUS…
Two bank not offering the foreign account then check with the others. If you find one that will accept your business then go there and forget about those two.
As a “common” man I would be happy to put my excess FX from my travel in an account. My small deposits will build up and be protection for me incase government decide to devalue in the future.
Start withdrawing your money from and closing your accounts at the two non-complying banks and see how fast they will reverse their decisions.
To open an account you have to declare where the deposits have come and will come from.
Is that for all the banks in the island?
I have my receipts .
Can you publish the requirements I sent you that government laid down before the banks added this “have to be working for USD salary ” nonesence. I had emailed you it earlier that way persons could see what was requested originally from government.
Will retrieve it.
So the hurdles from government and not just the two banks?
then that’s another story.
MISSED READ @ JOHN A
WILL WAIT UNTIL DAVID PUBLISH
@ John 2
No the government has done its part, it’s the banks now that are trying to avoid opening the accounts as they don’t want to have to insure the funds or lose the profit on selling you their foreign currency.
Government is not to blame here although their intervention is now needed.
If the others/ some of the other banks offering what WE and the government want then WE got to take the power out of those two banks hands. Time to start using WE power of the purse on some of these businesses.
Big issues and little issues. It used to be thought that foreign remittances from family in the North to family in the South was just a little thing, no big deal. Until the big boys discovered that for some countries remittances may equal or exceed foreign direct investments by the big boys.
So let us say that I raised little Johnnie and little Susie. I worked my hands to the bone, and my belly touched my back so that they could get a great education. So they are living in the great white north now and earning the big incomes. The old lady is here in Barbados struggling to survive on the little NIS. But little Johnnie and Little Susie are not ungrateful “kids,” they want the old lady to live a little better in her old age, so they both send $100 or $200 USD or CDN or pounds sterling or Euros each month to help out. But the old lady is the thrifty sort and she does not spend all.
Are you big guys telling me that the old lady cannot muster the little balances each month in a USD account at Scotia Bank or at first Caribbean International Bank unless the old lady can prove that she has a USD salary? But the old lady don’t wuk nowhere, hasn’t worked anywhere for years. So wha’ to do?
Didn’t the PM say it we money, we can spend it [or presumably NOT spend it how we like]. I want to save my extra in a USD account at Scotia Bank or First Caribbean. Wha’ to do now?
I int no drug dealer, nor do gun runner. I does go to church every Sunday as the Lord send.
Now multiply that one old lady (or old man for my friends whitehill and the miller) by 1,000, or 10,000, or 20,000 or 50,000 or 100,000.
MONEY SENT HOME BY WORKERS NOW THE LARGEST SOURCE OF EXTERNAL FINANCING IN LOW AND MIDDLE INCOME COUNTRIES (EXCLUDING CHINA)
The money workers send home to their families from abroad has become a critical part of many economies around the world. Based on the most recent data, remittances, as this money is called, will only grow in importance. Officially recorded remittances amounted to a record $529 billion in 2018, and are on track to reach $550 billion in 2019.
This money is flowing at about the same levels as foreign direct investment (FDI), but if China is excluded, they are the largest source of foreign exchange earnings in low- and middle-income countries, according to Migration and Remittances Brief 31, published by the World Bank Group and KNOMAD, the Global Knowledge Partnership on Migration and Development. In other words, if China is excluded from the analysis, remittances have already overtaken FDI as the biggest source of external financing.
Today, remittances equal or surpass 25% of GDP in five countries: Tonga, Kyrgyz Republic, Tajikistan, Haiti, and Nepal.
More ere: https://blogs.worldbank.org/opendata/money-sent-home-workers-now-largest-source-external-financing-low-and-middle-income
The old people understood that a sheep head once a day is worth more that a hog head once a year. I agree with John A, the banks are afraid of losing their sheep head once a day. Every day. 365 days a year.
That sheep head everyday is to sweet and the big foreign banks are very reluctant to let go.
@ sir simple
You are now starting to see why these banks here fighting it. Plus Don’t forget they taking the $100 USD bill from the old lady at at $198 bajan but going sell it tomorrow to you or me for $202 bajan!
The cashing of remittances is easy money for these vultures.
Now Mia want to come and mash up dem spree!
The reality is that if the banks want to frustrate the opening of USD accounts for whatever reason it will happen. The central bank has never shown the teeth to force the banks to do anything in Barbados. The blogmaster posted the view back when that Worrell and the central bank sold out to the banks by removing the minimum savings rate in return to create an attractive market for savings bonds. This collusion should be punished.
@ John2 September 5, 2019 3:19 PM
“As a “common” man I would be happy to put my excess FX from my travel in an account. My small deposits will build up and be protection for me incase government decide to devalue in the future.”
Sorry to disappoint you John A. But you will NOT be allowed to deposit any unused portion of your travel allowances if these foreign currency allowances were purchased in Barbados.
We ought to appreciate also that commercial banks are no longer interested in ‘servicing’ nuisance accounts whether denominated in local or foreign currency.
Petty amounts of remittances would not attract the interest of the commercial banks.
The preferred way of making these ‘small’ amounts of remittances or earnings work for the economy is for the government to seriously revisit the proposal of a duty-free shopping zone where locals can make purchases but only with foreign money which the retailers can either sell to the Central Bank or deposited in their foreign currency accounts to pay for their imports.
Agree with you Miller, banks are pushing nuisance accounts out of the bank.
Talking about nuisances: Once upon a time, a long long time ago I owed the then CIBC $0.10 BDS, that is ten Barbados cents on my credit card account. Those nuisances sent me three bills in three consecutive months demanding immediate payment. Exhausted with their silly demands i finally taped a ten cent piece (Barbados) to the bill and dropped it in their drop box.
That got the harpies offa my back.
So the customers are not the only nuisances.
The banks are also big, big, big bigable nuisances.
Scotia Bank at Haggatt Hall help my Canada Pension Plan pension check for 6 weeks to “ensure that the check cleared.”
Imagine a Canadian bank in Barbados holding a Canadian government check for 6 weeks to ensure that the Canadian government does not bounce a check on them.
The banks are big, big, big, bigable nuisances.
I walked into a Scotia Bank in Toronto. I had no account at the bank. The bankers did not know me from Adam, they asked for government issued picture ID. I asked whether Barbados government or Canadian government. They said either would do. I showed my ID and walked out with my cash in minutes. Gave it to Little Susie to buy school supplies.
@ David September 5, 2019 7:23 PM
In the age of a fast pace Internet banking world why would “non-residents/foreign nationals” want to go through that rigmarole of bureaucratic bullshit if they already have ‘foreign’ accounts in other jurisdictions?
How about making life easy for people prepared to bring money into the Bajan economy by allowing them to open both a local currency account and another foreign currency account with the same ‘local’ banking institution?
You cannot send money (‘material’ amounts) from any account held with a reputable banker overseas unless that transfer goes through a series of serious checks for fraud and money laundering risks.
It’s really embarrassing the Bajan financial management authorities cannot even collect the taxes owed by the internal conmen and cowboys but want to pretend to be implementing regulatory ‘controls’ (checks and balances) which are already in place in the most sophisticated manner.
One step forward and two backwards it seems!
The challenge for this government as it was for the last one is how will failed policies affect the recovery.
This move was mainly aimed at Barbadians being able to hold USD accounts. The idea was to get the money out the mattresses and into the banking system. Instead of doing that though a system that does not function will force those with USD to bank them in Miami or New York, as they have been doing for the last 20 years.
In the meantime we sit down and whine about being in a hole no one will help us out of.
If what you say was the intent why the stipulations from government?
Back to the old milo tot for me!
The stipulations listed above would still have been needed and are not unreasonable at all.
What they are doing is simply trying to ensure they look for illegal activity and sums that could not be substantiated by income levels.
By knowing someone’s salary say was $48000 bds a year, if they came with $5000 USD to deposit this would not be questionable, as they could easily have purchased that over a period of time. If however an unemployed person with no income came to deposit $5000 USD one would have to wonder where those funds came from.
That is why on large sums they asked for proof of source. If say you sold land and were paid in USD you would have proof of earnings from the legal transaction. The point is under the current requirements there was ample provision for proof of income already in place.
What is amusing though is the same conditions the said banks have been using to open local accounts for years with no problem, have all of a now because it’s USD involved become a problem.
We will see as you say if the MOF or Central Bank will step in to rectify this situation, or if it will be yet another case of hot air and lost opportunity.
The flaw in your position is that the banks will want to know the source of the USD.
On Fri, Sep 6, 2019 at 12:38 AM Barbados Underground wrote:
The source of the USD is only a concern if the amount does not bear relation to the persons Barbadian income as I showed above. Government and the banks know bajans have been hoarding USD for years, it is therefore only an issue if someone showed up with an amount of USD way in excess of what their Barbadian income related to. They are already in place guidelines for USD deposits at every Canadian Bank in every province of Canada, no one here needs to therefore reinvent the wheel.
Source of funds is subject to greater scrutiny every month. I may for example, have a salary of Bds$400,000, but how did I manage to convert Bds$200,000 to US$100,000? Where did that US100K come from? The source, not evidence you have earnings to justify the amount.
@SS it is standard for banks to work closely with local governments. Did u try taking your NIS chq to deposit/cash it in Toronto?
The fact the institution has the same name, does not mean systems between countries are connected.
The very point the blogmaster has been trying to make to John.
Miss M doing too much flying about, getting caught up in the usual politician free rides for her and her cronies.
What if heavens forbid Barbados is devastated by a natural disaster, what will our expectation be from other countries?
“It’s really embarrassing the Bajan financial management authorities cannot even collect the taxes owed by the internal conmen and cowboys but want to pretend to be implementing regulatory ‘controls’ (checks and balances) which are already in place in the most sophisticated manner.”
Oh ya noticed the IDIOCY….cannot collect a billion dollars in VAT STOLEN from the people and LOCK UP THE THIEVES..
…cannot collect billions in taxes from tax evaders…including her family….
…cannot lock up anyone for hundreds of millions missing from the treasury and pension fund.
…..or lock up those who have been MERRILY SKIMMING from contracts and DRAWDOWNS…did someone say Sam Lord’s Castle project…a could swear ah heard Enuff…….but want everyone to believe…she “got this”.
i heard Caswell is on the airwaves, wonder who he is giving some live hell..lol
@David. Great discussion. My take is the effect of opening up of foreign account locally and its attendant consequence of dollarisation in the banking sector. Dollarisation refer the level of foreign currency deposit to local currency deposit. This have further consequences down the road on interest rate and the fixed exchange regime.
It is the blogmasterâs understanding forex held by banks is treated separately as compared to central bank reserves. Our informant advised banks are limited to hold some % of foreign liabilities. The challenge will be availability of foreign funds to satisfy demand if such occurs. Will the government flex existing requirements?
@David. You can also have leakage, where people just convert Barbados dollar into US$ account. This leakage can put tremendous pressure on the exchange rate. To maintain a fixed exchange rate while at the same time operating a relative liberalised capital account, your interest rate policy cannot be independent. It will be greatly influenced by the US federal reserve.
@David . As discussed before, the issue of source of fund, especially cash deposit, cannot be overemphasized enough. Caribbean banks in the region have problem shipping out bulk US$ cash to the USA. This service is a important function of corresponding banking for banks in the region. Only Bank of America right now is willing to take on the risk. Other banks have discontinue the service.
@David. Correct. The commercial bank foreign deposits are not considered part of the country’s foreign reserve, but only the central bank foreign assets.
@David . Yes, banks have to keep a balance of matching asset and liabilities. Any level of mismatching can cause problem especially when it comes to dealing with different currencies.
@NorthernObserverSeptember 6, 2019 12:53 AM “SS it is standard for banks to work closely with local governments. Did u try taking your NIS chq to deposit/cash it in Toronto?”
NIS is direct deposit. No paper cheque.
Except that I have been banking with Scotia for 20 years. My pay cheque used to go there. My pensions go there. They had for years cashed my CPP immediately. Then a six week hold with no explanation.
I ought to be in their good books. I do not engage in financial naughtiness. I always pay my bills on time. Don’t bounce cheques.
Still no explanation 7 months later.
A reasonable explanation would be nice, even now.
How did we get here?
The pre-election admonition when foreign reserves were dwindling and at an all time low was to target the DIASPORA which holds bulk for-ex reserves in their financial instruments and banking institutions.
It was also noted that INCENTIVES be given to those wishing to partake in the venture of holding a For-ex account in Barbados.
Further, these accounts be held ONLY at the Central Bank with an established timeframe BEFORE any withdrawal.
It was NOT intended to be part of the local banking system, though some For-ex can be generated there.
Former Minister Sinclaire raised this idea in the HOA (maybe after reading it here in BU..hic) but never made mention of INCENTIVES which is KEY for Diaspora participation.
So, how did we get here?
Trinidad has been dealing with US$ currency shortage even before the collapse of oil price in 2014. T&T is very americanized in its taste and expectation. Therefore, they burned through a lot of green backs on consumer imports. Another fact, T&T has the largest car market in caricom, over two times the Jamaican car market. Almost Every middle class households in Trinidad own two cars.
This burnt rate of foreign currency depletion is not sustainable for Trninidad. All because they want to prop up an over-valued currency at any cost. If that is the strategy, then in Trinidad’s scenario, they will need a reserve ratio of about 100% of GDP.
Even Saudia Arabia is going through its own adjustment by offering to sell shares in its most valuable asset ARAMACO.
Where our mistake came here with the introduction of the USD accounts was when the PM stated “I will leave the details to the banks to sort out.” Her hope was that these banks would of welcomed the introduction of these accounts, not realising that they would fight them tooth and nail so as not to lose the monopoly they now hold on the sale of Fx.
We will now have to see if the authorities will step in and remove these banking hurdles or if they will cave to the Canadian bankers.
Another Canadian bank.
Same banks same USD deposits yet a completely different approach to entertaining the opening of the said accounts.
You know neither of these banks locally have even offered a USD VISA debit card tied to these accounts! Remember i said debit card not a credit card. They want you to still use the local credit card they issue you so as to get the forex sales on the charges made to your local card. Wheras if they issued you a visa debit card you could charge purchases that take Visa against the balance in your account. Same banks happy to do it for you in Canada though !
Talk about protecting a monopoly at the consumers expense!
RBC Royal Bank of Canada first opened a branch in Bridgetown, Barbados, on February 16, 1911,
After over 100 years in Barbados surely there is enough ” goodwill ” for the Prime Minister to ” get her people to talk to their people “.
More importantly it is time to find out if these 3 Canadian banks want to remain in the Caribbean.
Very true and the thing is we are not asking them to do anything that they are not doing for others opening the same USD accounts in Canada. As I said before we don’t need to reinvent the wheel here, we are just insisting on a level playing field that does not prejudice Barbadians on the island.
I mean it is total hypocrisy that you resist doing it here but I can get on an Air Canada and go there and not only open one, but the same banks there are competing for my business with special offers!
An interesting article about Canadian banks in the Caribbean.
Are Canadian Banks the only game in town? A little bird told me that the Canadian Banks can hardly wait to hightail it outta town. When(if) they do the other Banks can take up the slack. Perhaps a listen to the PM’s Town Hall in TO is instructive, she was lamenting the fact that many purchases of high end properties were consummated in New York etc. and the country was losing tax revenue as a result and she wanted to make it easy for the parties to complete their purchases in the favored currency so the sale of an asset could be deposited here short or long term to improve the country’s FX reserves. I don’t think that there was an expectation that locals would go to Banks en masses and open USD accounts.
BTW all high end ( and even some mid level) properties on the market are listed in USD, there must be a reason.
Exactly i don’t see bajans rushing to open them in numbers, but as the PM said why should a Bajan selling a property to a foreign buyer not have the option to deposit the hard currency here as opposed to Miami or New York. Also why in winter shouldn’t those involved in tourism not benefit from the same thing?
As they say change is good as long as it doesn’t affect certain people.
But how could govt make such bold statement with out knowning the rules and regulations which can become hurdles
Another example of govt making hot and sweaty political statements
More and more every day this govt continues to exposed this country in terms of being a banana republic
A currency devaluation through the back door of foreign currency accounts would be good. Barbados would regain competitiveness, which would otherwise not be possible due to excessively high local salaries.
The government can then continue to spend the worthless local dollars with the Barrow on them on the civil servants. They get the right value for their nap from 11am to 2am.
listen to the PM MIA Mottley meteorologist once again hogs the spotlight speaking once again about Dorian
sitting next to her looking like a boy in the yard is AG Dale Marshall
Did you listen to what she said? Does it make sense? You prefer to be always consumed with the minutiae of the situation?