BOJ injects US$158 million to shore up Jamaican dollar
The Central Bank has spent US$158 million in the past few weeks to help ease the decline in the value of the Jamaican dollar against the benchmark United States dollar.
At a press briefing today, Bank of Jamaica (BOJ) Governor Brian Wynter said on April 28, the Central Bank sold US$95 million to the market and a further US$63 million on May 20.
Wynter said the sums sold in April represented the single largest intervention by the Central Bank on any given occasion.
He disclosed that the Jamaican dollar depreciated by 0.9 percent in April and by 1.8 per cent so far this month.
Describing the depreciation of the dollar as excessive, the BOJ governor said it is not supported by the prevailing economic conditions.
Wynter said the pressure on the dollar appears to have been influenced by specific financial account transactions and their impact on market pricing.
Meanwhile, Wynter said the BOJ has assessed that the Jamaican dollar is now fairly valued.
He says the exchange rate can be expected to move in line with the difference between the inflation rate and that of Jamaica’s main trading partners.