Signing of BIS Code By Key Stakeholders Will Push Economic Development – BOJ Governor

Bank of Jamaica (BOJ) Governor, Brian Wynter, says the signing of the Bank for International Settlements (BIS) Foreign Exchange Global Code by key financial market stakeholders, today (July 29), represents a timely and important step in advancing the country’s economic development.

“This historic signing reflects our aim for Jamaica to have a robust, fair, liquid, open and transparent market for foreign exchange,” he said.

The Code was signed by the Presidents of the Jamaica Bankers’ Association (JBA), Jerome Smalling, and Cambio Association of Jamaica (CAJ), Heather Ferguson Fearon, during a ceremony at the BOJ, in downtown Kingston.

It provides a common set of guidelines for all authorised foreign exchange trading entities for promoting the integrity, transparency and effective functioning of the market, which Mr. Wynter said is vital to the global financial system.

The six leading areas of principle are ethics, governance, execution, information sharing, risk management and compliance, and the confirmation and settlement process.

The Code’s adoption is among the foreign exchange market reforms initiated by the Central Bank in 2017, which Mr. Wynter said aim to enhance the efficiency and transparency of Jamaica’s financial market.

Other engagements include implementation of the BOJ’s Foreign Exchange Intervention and Trading Tool (B-FXITT); implementation of foreign exchange net open position limits for authorised dealers and position limits for cambios to ensure market soundness and mitigate risk-taking; improving market intelligence; and establishing a foreign exchange market development committee to facilitate cross-fertilisation of stakeholders’ ideas.

“I am very happy for what we have been able to accomplish in reaching to this stage. We are confident that this move (FX Global Code signing) will support an improvement in the public’s faith in the foreign exchange market.

This is a signal that Jamaica is open and ready for business,” the Governor said.

Against this background, Mr. Wynter said it is now incumbent on each foreign exchange dealer and cambio to “follow through on their commitment to adopt the principles to which the Jamaica foreign exchange market has signed”.

“My expectation is that those who wish to compete in the foreign exchange market will be able to enjoy success, once they follow the principles that we are establishing,” he added.

For her part, Executive Director of the Jamaica Institute of Financial Services (JIFS), Darlene Jones, described the Code’s signing as a “momentous occasion” that signifies the commitment of the signatories and, by extension, their members to integrity and professional standards at the highest level.

“This is also indicative of Jamaica’s commitment to a successful foreign exchange industry, one that is comparable to international standards,” she added.

The BIS, which was established in 1930, is owned by 60 central banks, which, together, account for about 95 per cent of global gross domestic product (GDP).

The mission of the BIS, which is headquartered in Basel, Switzerland, includes serving central banks in their pursuit of monetary and financial stability, and fostering international cooperation in those areas.