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BOJ intervenes in FX market

Thursday, April 18, 2019

The Bank of Jamaica (BOJ) intervened in the foreign exchange market yesterday and sold US$20mn to authorised dealers and large cambios by means of BOJ's Foreign Exchange Intervention and Trading Tool (B-FXITT).

“This foreign exchange market intervention aims to address temporary demand and supply imbalances, as happens in a free market environment,” the BOJ said via a news release yesterday.

“The Bank encourages businesses to use forward contracts with their financial institutions to minimise the risks that are associated with their foreign exchange obligations,” the release said.

“This is particularly relevant in an environment where the exchange rate moves in both directions, as it is supposed to do in a free market environment when the economy enjoys a sustainable trade balance.