Offshore banking in Grenada has long been a staple of the financial economy for the island nation, however recently the benefits of banking offshore and globally here has come into question. Located between the Caribbean Sea and the Atlantic Ocean, Grenada is a sunny tropical Caribbean vacation and investing haven, covering 133 sq. miles of land. It has a land mass twice the size of Washington D.C. with its capital located in Saint George.
Grenada is famous, or perhaps “infamous,” as an offshore banking and offshore tax haven. In the history of offshore investing, few countries have been as corrupted as this one. However, things are starting to look up in the offshore sector in Grenada as the authorities are taking a direct approach in restructuring the legislation and enforcing closer regulation on the financial institutions here. A great many investors would be wise though to be leery of investing in Grenada just yet though.
The more than 90,000 people who live there speak English, which is the official language, with a French creole accent, making it easy for tourist to communicate. Grenada relies heavily on tourism for its commerce as do the citizens, with a per capita GDP of $13,400 (2008 est.). The official currency is the East Caribbean dollar (XCD; symbol EC$) which is broken down into 100 cents. It has a very favorable exchange rate for U.S. citizens traveling there of, 1 East Caribbean Dollar (XCD) = 0.36751 US Dollar (USD).
During the years 2004 and 2005, 2 hurricanes devastated the Island, damaging the agricultural sector severely and making tourism the industry most relied upon for economic growth. Tourism coupled with a strong construction industry and a growing financial center, has helped the country economy recover. The offshore banking sector of Grenada is reemerging yet again as well and is reportedly ready to take its place in the world scene as a reputable offshore institution. Or at least that’s what the authorities are telling the world.
After the news and press the country has received, as well as the ponzi scheme scandals that led to the collapse of many of the offshore banks and institutions in Grenada, perhaps its wise to keep a close eye on the country and adopt a “wait and see” attitude.