Executive Director of the Economic Growth Council (EGC) Senator Aubyn Hill, is calling on local companies to better communicate their need for foreign exchange to the Central Bank.
His call comes as there is a slip in the value of the Jamaican dollar, due to the high demand for foreign exchange caused by major capital market transactions.
The Bank of Jamaica (BOJ) has moved to alleviate the shocks with two flash sales of USD$30-million on the market yesterday and on Friday of last week.
Senator Hill says there is a tool that companies can use to communicate in advance how much foreign currency they’ll need for their operations.
He says the BOJ also has a responsibility to plan for shortage in the market.
In the meantime, Financial Analyst, Dennis Chung, says the increase in foreign exchange inflows is partly due to speculation.
Mr. Chung says the BOJ should ensure that there’s stability in the market.
And, Financial Analyst and Observer Columnist, Keith Colliser, says the demand is often driven up even further because players in the market are seeking to capitalize on a strengthening US dollar.
is what he calls a ‘band-wagon’ effect regarding the buying of foreign currency.