The International Monetary Fund has advised the Central Bank of the Bahamas to reduce its holdings of government bonds to “strengthen the credibility” of its currency peg.
In its latest Article IV consultation, the fund says the central bank “breached statutory limits” when it increased its holdings of long-term government bonds to BH$200 million.
The central bank increased its holdings in the wake of Hurricane Matthew, which hit the Caribbean region in 2016.
Following the hurricane, the cent
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