The value of certificates of deposit outstanding is now $124 billion.
Certificates of deposit are the securities the Bank of Jamaica gives to its lenders for money taken out of circulation in order to contain inflation.
When this money is locked away the supply of money to the public is reduced, cutting spending power, leading to less demand for the US dollar and both imported and local goods & services.
A $120 billion reduction in the amount of money in circulation leads to a reduction in spending of almost $1 trillion, based on the amount of times a dollar is circulated.
The central bank paid commercial and merchant banks, insurance companies, securities dealers, pension funds and public sector agencies as well as individuals 6.48% per annum to withdraw another $28 billion on Wednesday as it seeks to tame inflation which was running at 8.6% in September.
The lowest bid submitted was 6% per annum for $576.8 million, while the highest bid was 9% for $500 million.
These institutions, agencies and individuals however wanted to deposit $47.6 billion into the bank's vault.
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