Sun | Dec 4, 2016

BOJ sells US$50m into forex market

Published:Wednesday | January 21, 2015 | 12:00 AM

The Bank of Jamaica announced Tuesday that it has sold US$50 million into the foreign-exchange market since the start of 2015, in three interventions up to Monday, January 19.

The central bank did not state the reason for the interventions, but said alongside the announcement that "daily inflows to the foreign- exchange market for the month to date have been buoyant".

BOJ also advised that last week it repaid a US$145m two-year certificate of deposit ahead of maturity.

It's the first time the central bank is known to publicise its market interventions, outside of disclosures during its quarterly review of monetary policy.

Through its authorised dealers, the BOJ sells foreign currency at set prices for sale to end-users at a predetermined rate. It also buys foreign exchange from time to time. Last December, in what brokers described as an unprecedented offer, the central bank intervened but made no stipulation on the sell rate nor the recipients of the funds.

The bank did not disclose the rates at which it sold currency to the market this month, but treasury sources say Monday's intervention was at a rate of $115.3086 per US dollar, and that BOJ injected around US$22 million into the market that day.

The dollar closed up at $114.8872 per US dollar on Monday but retreated to $115.3893 on Tuesday; it traded at $115.31 on Friday.

Dealers also said the offers in January did

not place any restrictions on the resale price or buyers.

The BOJ did not respond to requests for comment on why it chose to disclose its market activity.

business@gleanerjm.com