Tue | Oct 15, 2019

BOJ sells US$30 million to forex market amid increased demand

Published:Thursday | July 11, 2019 | 1:23 PM

The Bank of Jamaica (BOJ) today intervened in the foreign exchange market selling US$30 million to authorised dealers and large cambios.

The BOJ says the move is intended to address temporary demand and supply imbalances in the market.

Yesterday, the Opposition People's National Party (PNP) raised alarm over an acute shortage of supply in the foreign exchange market.

According to the opposition, some major businesses have been unable to source foreign currency from authorised dealers for the past two weeks.

It also said that the Jamaican dollar slipped to J$135.48 to US$1.00 as at close of business Wednesday, a depreciation in value of more than three per cent in the first 10 days of July.

Opposition spokesperson on finance and planning, Mark Golding, argued that the current arrangements governing the foreign exchange market need to be reformed.

Golding added that the frequent volatility over the past year was undermining business confidence and damaging the country's economic performance and prospects.

"This is evidenced by the fall in the Business Confidence Index reported this week, which cites fluctuations in the foreign-exchange rate as a key determinant of the fall in business confidence," he said.

"A majority of firms indicated that this volatility is undermining their ability to make long-term plans. Firms willing to invest in new plants and equipment has also declined,” he added.

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