Declaring that the Jamaican dollar has depreciated by only 1.0 per cent for the 12-month period up to October 2 this year, Bank of Jamaica (BoJ) Governor Brian Wynter said that the central bank is reaping positive results from the Bank of Jamaica Foreign Exchange Intervention and Trading Tool (B-FXITT).
In a presentation to the Public Administration and Appropriations Committee (PAAC) of Parliament yesterday, Wynter said that the 1.0 per cent depreciation of the dollar up to early October compares with 7.6 per cent for the similar period last year.
Multiple price mechanism
According to the central bank governor, B-FXITTÂ is a rules-based competitive multiple price mechanism used by the BoJ to buy from and sell to authorised foreign exchange dealers and cambios.
He said that this arrangement does not directly affect transactions by members of the public with their authorised dealers or cambios, which continues as before.
“Significantly, we have at last moved from the one-way market – the slide in the dollar – to a two-way market. The dollar goes up and it goes down. This can occur, and is occurring, when the exchange rate is in the zone of what we would call fairly valued,” said Wynter.
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