The Bank of Jamaica (BOJ) has announced it will be selling USD$50-million to the market over the next four weeks.
The BOJ announced the plans in the latest schedule for its Foreign Exchange Intervention and Trading Tool, B-FXITT. It’s the first time in over a month that the central bank will be selling foreign currency.
The last sale was USD$5-million on July 11.
The current sale, which is being done via auction, starts with USD$10-million today, followed by $15-million next week, another $15-million on August 29, and $10-million on September 5.
During that time, the bank has also announced it has no intention of buying any foreign currency on the market.
Analysts say the BOJ is taking the move to ease the pressure on the exchange rate, which opened today at a record $136.85 to USD$1.
The local currency has been depreciating for the past fourteen weeks.
President of the Jamaica Manufacturers and Exporters Association, JMEA, Metry Seaga says they were concerned that the BOJ’s purchases of foreign exchange were contributing to the dollar’s slide.
However, he says that concern has been allayed.