Thu | Jan 23, 2020

BOJ pushes back time line for forex platform

Published:Sunday | March 3, 2019 | 12:12 AM
John Robinson, Senior Deputy Governor, Bank of Jamaica.

The Bank of Jamaica (BOJ) has begun the process of procuring an electronic trading platform that is intended to facilitate inter-bank activity and foreign exchange transactions among traders.

But the central bank, which previously indicated the platform would be launch in the third quarter 2019, now tells The Sunday Gleaner that the timeline is uncertain. The cost is also to be ascertained.

The platform has been sold as a tool to reduce uncertainty in sourcing foreign exchange. It will allow licensed forex traders to transact with each other.

“As with any standard FX platform, bids and offers by FX traders will be posted, and once a quote is accepted, the trade is executed and settlement takes place. The platform is designed to provide transparency and price discovery,” the central bank.

The BOJ, which is also upgrading its payments platform called JamClear, confirmed that the forex platform will be an extension of that system.

“It is a plug-in module with the same capabilities for real-time settlement,” said BOJ senior deputy governor John Robinson.

In its last annual report, the central bank reported that upgrades to JamClear would be done in phases at a cost of US$542,000, inclusive of hardware and software.

JamClear-RTGS provides a settlement mechanism in which both processing and final settlement of payment instructions by participating institutions take place continuously throughout the day. In 2017, the platform recorded its highest number of transactions in a single year, 719,120, the value of which amounted to $29.2 trillion.