Sat | Sep 23, 2017

BOJ offers USD certificates of deposit

Published:Monday | February 6, 2017 | 2:28 PM
Bank of Jamaica Building in downtown Kingston

The Bank of Jamaica said it will be offering three US dollar certificates of deposit (CDs) to the market between February 9 and 15.

However, the Bank said it reserves the right to close the offer before 12:30 p.m. on Wednesday, February 15, the final date for receiving bids.

The offer on one of the instruments is for an unlimited amount with a tenor of three years, and a fixed coupon of 2.65 per cent per annum, which is 1.16 percentage points above the current rate of 1.49 per cent on three-year US Treasury.

Another of the instruments is for an unlimited amount with a tenor of five years and offers a fixed coupon of 3.6 per cent per annum or 1.67 percentage points above the current rate of 1.93 per cent on five-year US Treasury.

The third is also for an unlimited amount with a tenor of seven years and offers a fixed coupon of 4.3 per cent per annum or 2.03 percentage points above the current rate of 2.27 per cent on seven-year US Treasury.

All the coupons are paid semi-annually.

The instruments are available directly to primary dealers and commercial banks. Other investors may access them through a primary dealer.

- mcpherse.thompson@gleanerjm.com