BOJ makes another intervention in FX market

The Bank of Jamaica (BOJ), made its third intervention in the foreign exchange market yesterday to prevent volatility.

The Central Bank announced another flash sale operation with an additional US$20 million  disbursed to authorised dealers and cambios.

This followed a US$30 million auction on Friday and a  similar amount on Monday.

On Monday Bank of  Jamaica Governor, Brian Wynter, explained that the demand for more U.S. dollars is not necessarily a bad thing. 

“There has been a significant slippage in the exchange rate and a sharp increase in up and down movement in the last few weeks. Since the start of the year, there have been higher levels of demand for US dolalrs coming from large capital market transactions. I need to point out that these type of transactions are a good sign for the economy - as they are are only occuring as the economy is improving,” the Governor then said.