Tue | Jun 15, 2021

BOJ to lift forex investment limit

Published:Wednesday | January 1, 2014 | 12:00 AM

The Bank of Jamaica (BOJ) said that as part of the effort to facilitate the introduction of collective investment schemes (CIS) in 2014, it is lifting the limit on investments in foreign currency securities, which currently applies to securities dealers and CIS.

The prevailing cap on such investments, with the exception of those categories exempted by ministerial order, is five per cent.

The BOJ said the cap will be lifted in steps to at least 25 per cent by the end of 2015 and that "the intention is to remove the cap by the end of 2016 unless extraordinary circumstances require a reassessment," the central bank said in a release yesterday.

"Financial entities will continue to be subject to the prudential standards applicable to each sector of the industry in order to preserve financial stability," the central bank said.

Lifting the cap on investments is part of the financial sector reforms the Government has agreed to undertake under the International Monetary Fund four-year economic support programme.