Central Bank Steps In With US$40m FX Intervention
The foreign exchange market received a US$40 million boost on Thursday after the Bank of Jamaica stepped in to curb volatility and support price stability.
A significant share of the injected funds was absorbed by NCB Financial Group, JMMB Bank, JMMB Securities, and Sagicor Bank Jamaica, accounting for more than half of the total amount.
According to the central bank, the latest move represents the start of a broader programme of carefully timed and openly communicated interventions aimed at easing uncertainty and strengthening market confidence.
Further action is already planned, with the Bank of Jamaica confirming an additional US$30 million foreign exchange sale scheduled for Friday.
Under the terms of the intervention, participating financial institutions must pass on the foreign currency to end users at rates no higher than J$0.20 above the price at which they acquired it.
For the purposes of the programme, end users are defined as businesses involved in the production of goods and services that need foreign exchange to meet payments for essential imports and related services.
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