There has been no official response from the Jamaica Bankers Association to a move by the central bank to discourage Jamaicans from holding large amounts of US dollars.
On Monday the Bank of Jamaica (BOJ)announced that it will reduce the incentives deposit taking institutions have for keeping US dollar deposits.
The central bank says it will ask financial institutions to put more of the US dollar deposits they have in the Bank of Jamaica.
The new policy will take place in two phases - with financial institutions required to put 15 per cent of all US dollar deposits they have in the central bank by April. This will effectively force banks to pay lower interest rates to their customers on US dollar deposits.
It is hoped that the policies will remove the incentives for Jamaicans holding US dollars.
For the Bank of Jamaica, it is to reduce dollarisation so that the policies implemented for economic growth and to contain inflation will have greater impact.
comments powered by Disqus
All feeds
