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The International Stock Exchange of the Bahamas and Policies on Import of Foreign Capital Print E-mail

Because foreign investment is the second most important industry in the Bahamas, the government has created concrete policies and ways to regulate the administration of foreign investment in the country.  Bahamas International Stock Exchange (BISX) is the only avenue of foreign investment.  As with the influx of foreign capital, policies have been made by the government to regulate the Bahamian dollar and other foreign capital.

Being the only stock exchange in the Bahamas, the Bahamas International Stock Exchange (BISX) had been a private enterprise with an initial investment of $5 dollar as it started in April 2000.  It was launched to be one of the most modern and enhanced stock exchanges and included an international stock exchange as well as a domestic stock exchange.  However, it had been characterized by a curtailing of funds and low-trade rates since it started.  After its first two years, it had lost $2.3 million dollars.  Despite the major loss in revenues, the Minister of State for Finance, James Smith, decided to continue the proceedings of the stock exchange. 

Due to its loss, the government had been sustaining it with a monthly subsidy of $50,000.  As of 2003, 14 companies had been listed, and the value of the stock exchange had become $1.4 billion.  As of 2004, 19 companies was the total number of companies listed.  As of 2005, measures had been made to boost revenues including an electronic program that aims to attract foreign investors through the net.  As of today, BISX is currently administering the international and domestic stock exchange operations in the Bahamas.

The controls on Bahamas' capital exchange are for the Bohemian dollar (1 Bohemian dollar = 1 US Dollar) and the foreign resources of investors.  Fr nonresidents and when trading in the Freeport, all currencies are accepted.  For foreign exchange, no tax is applied, but doing so requires a visit to the Exchange Control Department in the Central Bank.  This is helpful when making investments as the capital of investments must be in Bohemian Dollars.  For investors, an "approved status" must be granted before gaining approbation of investing in a certain industry.

 

 
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