KINGSTON, Jamaica — The Bank of Jamaica (BOJ) today intervened in the foreign exchange market, selling US$20 million to authorised dealers and large cambios by means of BOJ’s Foreign Exchange Intervention and Trading Tool (B‐FXITT).

The BOJ, in a statement a short while ago, said that this foreign exchange market intervention aims to address temporary demand and supply imbalances, as happens in a free market environment.

The bank is now encouraging businesses to use forward contracts with their financial institutions to minimise the risks that are associated with their foreign exchange obligations.

“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,” the bank said.

This is not the first BOJ intervention in the FX market, with the bank selling millions of dollars to authorised dealers and cambios on several occasions earlier this year.