BOJ again intervenes in forex market
Bank of Jamaica (BOJ) intervened in the foreign exchange market this morning with an offer of US$20 million to be sold to authorised dealers and large cambios by means of Bank of Jamaica’s Foreign Exchange Intervention and Trading Tool (B-FXITT).
This follows two consecutive days of interventions totalling US$70 million.
The BOJ says the interventions are intended to address temporary demand and supply imbalances in the market.
For today’s intervention, BOJ will require that authorised dealers and large cambios re-sell all the funds to end-users.
End-user is defined as non-financial commercial entities that are funding obligations for goods and services acquired.
The BOJ says this requirement is not new and actually existed prior to December 2014.
The bank explains that it has become necessary to reinstate it at this time as the larger part of BOJ interventions over the past two days has not been reaching end users due to the unusually large demand to finance foreign currency investments.