The Bank of Jamaica, BOJ, believes its interventions in the foreign exchange market remain appropriate, despite calls from the International Monetary Fund, IMF, for it to limit its footprint.
BOJ Governor, Richard Byles responded to the IMF’s criticisms at a recent quarterly media briefing.
He says the current arrangement continues to serve the country well.
Chevon Campbell tells us more.
The BOJ routinely purchases and sells foreign exchange in order to stabilise the market.
Over the last 12 months, the central bank sold one-point-2-billion US Dollars, while purchasing roughly nine-hundred-and-31 million in turn.
The IMF praised the stability of the foreign exchange market in Jamaica during its recent article four review.
But, the multilateral said going forward, there is scope to deepen FX markets by reducing surrender requirements and scaling back the BOJ’s interventions.
BOJ Governor, Richard Byles, has responded to that call.
Governor Byles says the BOJ’s engagement with the foreign exchange market has been mutually beneficial, with the intervention not interfering with the bank’s ability to generate significant reserves.
Deputy Governor, Wayne Robinson, went further.
He says the BOJ’s forex activity is warranted.
