The Bank of Jamaica, BOJ, says the recent slip in the value of the Jamaican dollar is due to high demand for foreign exchange caused by major capital market transactions.
BOJ Governor, Brian Wynter, is assuring Jamaicans that this is good for the economy. He also says the central bank is working to alleviate the pressure being placed on the Forex market.
As of today, the local currency sits at just over JMD$137 USD$1. That’s from a low of JMD$127 to USD$1 at the end of 2018.
Governor Wynter in a statement this afternoon says the slippage is being caused by high demand for foreign exchange. But, he says this is a good thing.
Governor Wynter says to add to the good news, Foreign Exchange inflows have not slowed down.
However, he says investors and businesses are demanding more. The Central Bank head says this two-way movement is part of a healthy foreign exchange market. But, Governor Wynter says the bank has moved to alleviate the shocks with two flash sales of USD$30-million on the market this morning and on Friday of last week.
Governor Wynter says the pressure on the foreign exchange market is temporary and will pass.
However, he is assuring Jamaicans that the central bank will act to ensure orderly conduct in the market.