Today, Bank of Jamaica briefed members of the Jamaica Bankers Association and the Jamaica Securities Dealers Association, on measures that the central bank would implement in order to assure financial institutions of adequate access to both foreign currency and Jamaica Dollar liquidity, throughout this challenging period.
With the sharp contraction in the tourism industry and the likely disruption to remittance inflows, the supply of foreign exchange to the market will fall in the near term. The central bank will support the foreign exchange needs of businesses in the real sector through sales to authorised dealers and cambios, as needed.
Bank of Jamaica also stands ready to expand the volume of swap arrangements with authorised dealers. At the same time, the Bank has asked securities dealers and arrangers to postpone the issue of instruments denominated in foreign currency until the flows in the market can accommodate these capital market transactions.