What is the 2% Foreign Exchange Fee?

When you exchange Barbados Dollars for foreign currency, the Central Bank of Barbados applies a 2% Foreign Exchange Fee (FXF) on the Barbados Dollar value.

For example, if you exchange BDS $100 for US Dollars at a bureau de change, a 2% FXF will be deducted from the balance ($100 - 2% = $98). Therefore you would receive the equivalent of BDS $98 in US Dollars at the advertised exchange rate.

Likewise, if you make an overseas purchase using a credit or debit card (i.e. a transaction in which the settlement currency is not the Barbados Dollar), a 2% FXF is applied. This is always calculated on the Barbados Dollar value of the transaction; not the foreign currency value.

For card payments and wire transfers, your bank is responsible for collecting and remitting the FXF to the Central Bank of Barbados. Your account will automatically be debited as required. FXF charges are always in Barbados Dollars and appear separately on your bank statement.

Please note the FXF also applies to External Accounts.

Note: The FXF does not apply when exchanging foreign currency for Barbados Dollars; because in that scenario the Central Bank is gaining foreign currency, not losing foreign currency.