Foreign Exchange Market Remains Relatively Stable – BOJ

The foreign exchange market remains relatively stable, reflecting continued strong tourism revenue and remittance inflows, as well as the effect of actions taken by the Bank of Jamaica (BOJ).

Governor, Richard Byles, made the disclosure during the Central Bank’s Quarterly Monetary Policy Press Conference at the BOJ on Wednesday (February 21).

“To prevent undue volatility in the foreign exchange market, BOJ has sold approximately US$907 million via its B-FXITT (BOJ-Foreign Exchange Intervention Trading Tool) facility over the last 12 months, ending January 2024,” he stated.

“When these sales are set against BOJ purchases, however, the result is that the Bank net purchased approximately US$1.3 billion over that same period,” the Governor added.

In the context of the exchange rate’s stability, Mr. Byles informed that the general downward trend in dollarisation has continued, with individuals and businesses reflecting an increased preference to hold Jamaican-dollar assets in deposit-taking institutions (DTIs).