Bank of Jamaica again intervenes in the foreign exchange market

Following weeks of anxiety over the local currency losing value to the US dollar, the Bank of Jamaica (BOJ) has again intervened in the foreign exchange market, selling US$40 million to authorized dealers and cambios.

In a statement on Tuesday, the BOJ reiterated that there had been an increase in demand for foreign currency due to regular re-stocking by retailers for the Christmas season. In addition, it said there had been extraordinary demands relating to portfolio transactions.

The Central Bank stressed however that it does not expect that the recent pace of exchange rate movement will be sustained, and that it will only intervene to prevent disorderly market conditions.

The BOJ also said the development of a trading platform for foreign exchange to facilitate greater transparency is at an advanced stage.

It is urging Jamaicans to use forward contracts to meet their foreign exchange needs.