As part of efforts to reign in inflation, which rose to 4.4 per cent between November 2024 and November 2025, the Bank of Jamaica will withdraw another $29.5 billion in circulation on Wednesday.
The funds will be locked away for 28 days, limiting the amount of cash available in the economy and reducing pressure on prices.
The move comes amid supply constraints caused by Hurricane Melissa, particularly in the agricultural sector, where reduced output has contributed to higher food and beverage prices - the main drivers of inflation.
Of the total amount, the central bank will seek to absorb $28.25 billion from private institutions and individuals through a 30-day certificate of deposit (CD); $1.47 billion will be taken from public sector entities, including the National Housing Trust, National Insurance Fund and the Urban Development Corporation.
The instruments will mature on January 28 and investors will earn 6 per cent interest per annum, less 25 per cent withholding tax.
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