Furthermore, prompted by a decline in expected real interest rates and an improvement in the income and financial footing, households and firms, which have been striving to increase  4  BIS central bankers’ speeches  savings and holding of cash and deposits based on their deflationary mindset, are expected to expand housing investment and business fixed investment.
If the end goal is to have fully liberalised capital flows, then we must accept that it would come with a floating Bahamian dollar. If we float, we should want to avoid the exchange rate volatility that arises when investors become jittery.