Bank of Jamaica Governor, Richard Byles, is urging Jamaicans to get used to changes in the price of US dollars, and treat the fluctuations just like any other price change.
This, as the local currency slid to its weakest in the country’s history last week, nearing a record $J139 Jamaican dollars to $US1.
It prompted the BOJ to intervene with a flash sale of $US30 million.
Mr. Byles was speaking at a Thought Leadership Breakfast hosted by the JMMB Group this morning.
The BOJ Governor says it’s not actually the Central Bank’s job to manage the dollar.
He believes in a liberalized foreign exchange market, where buyers and sellers determine the price.
However, he says there are ways that financial institutions can do business without resulting in such wide swings in the value of the Jamaican dollar.
Mr. Byles, who’s been managing the Central Bank since August, says the system has been straining under heavy demand from the banks.
The Central Bank Governor says over the past few months, the wide swings in the value of the Jamaican dollar have become less dramatic.
But, he still plans to sit down with financial institutions to come up with a better way to manage the Jamaican dollar, such as making their orders well in advance.
Meanwhile, Mr. Byles is urging people who need to buy US dollars for their businesses, to treat changes in the value of the local currency the same way they would any other market price.