Wed | Mar 21, 2018

Bank of Jamaica to prepay US$256M certificates of deposit

Published:Monday | January 23, 2017 | 4:18 PM
The Bank of Jamaica building at Nethersole Place, downtown Kingston.

The Bank of Jamaica said it will prepay foreign currency-denominated certificates of deposit (CDs) totalling approximately US$256 million (US$158.6 million and £79 million) to holders of those instruments on Wednesday, January 25.

The pre-payment follows the call notice issued by the Bank on October 25, 2016 in accordance with the terms of the instruments.

The BOJ said that it will be continuing its regular monthly issues of US dollar CDs.

When combined with the prepayment, the issues will advance the Bank towards the achievement of its target to reduce the stock of outstanding US dollar CDs to US$900 million by March 31, 2017.

The central bank said the net redemption of foreign currency-denominated CDs will also result in a decline in the Net International Reserves, but the non-borrowed reserves target agreed under the precautionary standby arrangement with the International Monetary Fund will be comfortably met.