The Bank of Jamaica (Amendment) Act, 2020, aimed at modernising and strengthening the operations of the Central Bank by improving its governance, was approved in the Senate during its sitting on Friday (December 4).
Minister without Portfolio in the Ministry of Economic Growth and Job Creation, Senator the Hon. Aubyn Hill, who piloted the Bill, said the amendment of the BOJ Act “is an important step to modernise the BOJ through clarification of its mandate and enhancement of its governance structure”.
“The amendments seek to bring greater independence to the BOJ in its operations and policy decision-making process, while at the same time ensuring, importantly, transparency and accountability through adequate governance arrangements,” he said.
The Bill was first tabled in the House of Representatives in 2018 and was subsequently referred to a Joint Select Committee of Parliament, chaired by Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, which deliberated on the Bill.
The Committee made recommendations, which were accepted and incorporated into the Bill.
The Bill gives the Central Bank autonomy and independence in law, in the implementation of monetary policy.
In addition, the legislation seeks to ensure that the Central Bank is adequately capitalised at all times and institutes a robust and modern institutional framework
The Bill was passed in the Lower House on Tuesday (November 17).