The Jamaica Chamber of Commerce (JCC) says it strongly supports the moves the Bank of Jamaica, BoJ, have made recently to deal with the slide in the value of the Jamaican dollar versus its US counterpart.
Last week the BoJ, carried out a flash sale pumping USD$400million into the market.
It’s also promised to pump another USD$100-million into the market over the next few weeks through its Foreign Exchange Intervention & Training Tool, B-FXITT.
It seems the central bank’s intervention is paying off as the Jamaican dollar appreciated on Friday.
And, according to today’s midday rate, the Jamaican dollar is appreciating again, now trading at $134.42. That’s a $0.50 appreciation on Friday’s rate.
Third Vice President of the JCC, Keith Collister says, the Chamber is encouraging the central bank to continue its intervention.
There are fears sparked by a historic slide in the dollar, that the BoJ and the government were deliberately devaluing the dollar to raise the country’s inflation rate.
These fears forced the BoJ Governor Bryan Wynter and Finance Minister, Nigel Clarke to take the unprecedented step of revealing correspondence which they claim proved they aren’t manipulating the currency.
Mr. Collister says the JCC welcomes this move.
He argues that a combination of factors led to fears that the government was intentionally devaluing the dollar.