THE BANK of Jamaica (BOJ) says it recently purchased US$47 million from one entity participating in the foreign-exchange trade.
Brian Wynter, the central bank governor, told a parliamentary committee last week that no one else could have purchased the money from the player.
"There is the possibility of particular actors who may have large amounts that they need for perfectly legitimate reasons. They may need to buy or sell large blocks that can present challenges for the smooth running of any market," Wynter said.
The governor said the bank was able to "digest such lumps" as the US$47 million which was being sold.
He told the parliamentary committee that the purchase of such funds is one way in which the BOJ participates in the forex market to ensure its smooth running, thus guaranteeing a market-driven exchange rate.