The Bank of Jamaica (BOJ) says strong interest from money changers and investors led to more funds being offered than the central bank intended to absorb in its latest liquidity management operation.
They submitted 241 bids valued at $35.3 billion while the central bank wanted to lock away only $18 billion.
The Bank of Jamaica says the average interest rate demanded by investors was just under six per cent with bids ranging from the mid-five per cent area to as high as eight per cent.
The BOJ uses its fixed rate certificate of deposit to help contain inflation by removing excess cash from the system.
The central bank adds that the total value of certificates of deposit now outstanding has increased, reinforcing its efforts to manage liquidity and keep inflationary pressures in check.
comments powered by Disqus
All feeds
