Bank of Jamaica Governor, Richard Byles, says the central bank will only intervene in the foreign exchange market if it’s inflation target is threatened.
Mr. Byles was speaking at the BOJ’s quarterly press briefing this morning.
Our Business and Finance Editor, Kalilah Reynolds, reports.
The BOJ has long maintained that the depreciation in the Jamaican dollar does not necessarily impact the cost of goods and services, which is measured by the inflation rate.
But with the dollar now trading at record low levels of more than 151 dollars to 1 US, BOJ Governor Richard Byles says he understands the anxiety of Jamaicans.
Yet, he says they will only intervene when the cost of goods and services start rising – or falling – too much.
According to Governor Byles, the central bank has provided some US$700 million in support to the market over the past few months.
This includes US$30 million sold last week in a flash auction.
However, Mr. Byles is stressing that the BOJ has enough US dollars in reserve, to take the country through this crisis.
He says they stand ready to deploy additional measures if needed.
Kalilah Reynolds for Nationwide News.