Finance
TCIG can afford to do lower LIVING COSTS; surplus hits $73 Million says Finance Minister
By Dana Malcolm
Staff Writer
#TurksandCaicos, May 19, 2023 – Residents and politicians agree, the cost of living in the Turks and Caicos is especially high. It has been a regretful admission and an enduring complaint respectively over the years, even more so in the 2022/23 financial year.
A deadly cocktail of inflation over dependence on imports, almost no local food production, low exports, and a resource stifling war, has left the Turks and Caicos’ residents paying exorbitant prices on nearly every front, from food to gasoline to housing.
Despite several programs implemented in the financial year (2022/23), the Government has not quite managed to bring costs down significantly or even to cut the prices where they tend to balloon most significantly, at the ports.
Last year, the PNP Government stepped in with three programs to buffer residents from inflation: The Food and Fuel Tax Break (April 2022), the Bread Basket Duty Exemptions (August 2022), and the Fuel Factor Stabilization Credit (October 2022). Introduced alongside various stimulus payments, the credits were aimed at taming food, electricity, and gasoline costs.
Together, these were initially projected to cost the Government $ 21.5 million. That is $15 million for the Food and Fuel Tax Break, an initial 4 million for the Bead Basket exemptions and 2.5 million for the Fuel Factor.
It took some time, the measures suffered some technical setbacks but they eventually worked to lessen the strain and were given multiple extensions.
Still, Magnetic Media fielded residents’ questions, asking ‘whether this was the most the Government could do?’ The Government made it clear that the buffer was just that, a buffer, not a magic wand to eliminate the historic inflation rate entirely.
With the programs and inflation slowly decreasing globally, prices in the country eased a bit in all three areas. However, revealing public conversations with a leading shipper exposed that the Turks and Caicos uniquely pays more for goods brought in. Having little exports, many learned, drives up the cost of imports which come largely from the USA.
Giving credence to the concerns that more could be done to reduce the cost of living in TCI, The Turks and Caicos Islands Government reported that revenue in 2022 took no significant hit from the three programs, which reduced or eliminated Government taxes on select commodities.
In fact, revenue earned on imports from January – September 2022 increased by 45.7 percent, or $497.5 Million, according to the Trade Report of April 2023.
The Budget Communication delivered by the Hon E Jay Saunders, Deputy Premier and Minister of Finance, Investment & Trade, further revealed that TCIG underspent its initial $388 million Budget for 2022-2023 by a whopping $48 million. That contributed to an ‘operating surplus’ of $73 million.
It now brings to the surface, yet again, that the TCI Government with only $600,000 in debt, tens of millions in surplus, and the understanding that the country’s unique position which forces the costs of fuel, food, electricity, and housing to be unrelentingly high, can afford to do more.
For the 2023/24 financial year E Jay Saunders, Deputy Premier and Finance Minister, has promised that with record profits recorded, cost of living is one of the main items the Government is looking to address. On the way, is a trio of social programs and port upgrades to make importation cheaper.
Turks and Caicos, May 12, 2026 – A new era of digital finance regulation could be on the horizon for the Turks and Caicos Islands, as
the Financial Services Commission moves to establish a legal framework for virtual assets and cryptocurrency-related businesses.
The TCI Financial Services Commission on Friday launched a public consultation on its proposed Virtual Assets Business Bill, 2026, legislation designed to regulate virtual asset service providers, stablecoin issuers and other digital asset activities operating in or from the territory.
Globally, governments and regulators have been racing to catch up with the rapid growth of digital currencies, blockchain technology and online financial platforms. Concerns over money laundering, cybercrime, fraud and the collapse of poorly regulated crypto exchanges have pushed jurisdictions to tighten oversight while still trying to attract financial innovation and investment.
The proposed TCI bill appears aimed at positioning the territory within that evolving international framework.
According to the FSC, the legislation is aligned with international standards and guidance from bodies including the Financial Action Task Force, International Organization of Securities Commissions and the Financial Stability Board.
The Commission said the bill would introduce a “comprehensive licensing, supervisory, prudential and enforcement framework” for the
sector. The proposed law includes anti-money laundering and counter-terrorism financing obligations, cyber resilience requirements, enforcement measures and even a regulatory sandbox intended to support innovation.
Among the notable features are proposed reserve and governance rules for stablecoins, which are digital currencies typically tied to traditional assets like the US dollar. The draft legislation also outlines exemptions for certain technology providers and closed-loop token systems.
The FSC said the consultation period is intended to gather public and industry feedback before the bill is submitted to Cabinet next month. Written submissions must be received by June 8, 2026.
The consultation paper and draft bill have been published on the FSC website for public review.
Angle by Deandrea Hamilton. Built with ChatGPT (AI). Magnetic Media — CAPTURING LIFE.
The Bahamas, May 4, 2026 – With elections days away, The Bahamas has picked up a headline-friendly win: a credit rating upgrade.
Here’s the one-liner that matters most:
A higher rating can mean cheaper borrowing for the government—over time.
That’s the upside. When lenders see less risk, they demand lower interest. That can ease the cost of financing big projects and managing national debt.
But that’s only part of the story.
Moody’s Ratings has upgraded The Bahamas to Ba3 from B1, citing stronger fiscal discipline, improved liquidity and a more stable funding strategy. It also points to better tax collection, controlled spending and continued strength in tourism as key drivers.
Moody’s expects the government to maintain solid primary surpluses—essentially bringing in more than it spends before debt payments—and projects national debt to decline from 72.5% of GDP to around 68% by 2027.
That’s progress.
But here’s the reality check.
The Bahamas is still below investment grade. In plain terms, the country remains in speculative territory, meaning investors still see a higher level of risk compared to more stable economies.
Debt, while improving, is still elevated. And the economy remains heavily dependent on tourism—a sector that can shift quickly with global
conditions, weather events or geopolitical shocks.
Even Moody’s signals that more work is needed. Further upgrades depend on:
- sustained reductions in debt
- improved debt affordability
- and continued access to favourable financing
So while the upgrade reflects real gains, it is not a finish line.
It is a signal that the country is moving in the right direction—but must stay disciplined to keep that momentum.
For voters heading to the polls, the takeaway is simple:
The Bahamas has strengthened its financial position—but the fundamentals still need work.
The progress is real.
The challenge now is to make it last.
Angle by Deandrea Hamilton. Built with ChatGPT (AI). Magnetic Media — CAPTURING LIFE.
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