The Bank of Jamaica says it has intervened in the foreign exchange market 17 times since the start of the year, injecting US$470 million from the Net International Reserves and withdrawing billions of Jamaican dollars from circulation.
The aim is to prevent the local currency from falling below $160 to one US dollar.
But the International Monetary Fund has raised concerns, recommending that the central bank scaled back its intervention.
According to the IMF, reducing the Bank of Jamaica's purchases in the foreign exchange market would increase supply to end-users and lower exchange rates.
It says the BOJ's buying activities drive up demand and prices, making the system less efficient.
The IMF believes a more hands-off approach would increase the amount of foreign currency available to end-users and help reduce costs in the market.
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