The Bank of Jamaica (BOJ) has removed the restriction on the price at which B-FXITT participants can resell the US$20-million intervention funds, which was auctioned on Wednesday.

While the restriction has been removed on the resale price, the BOJ has imposed a new restriction for this auction, whereby the resale recipients are limited to end-users as defined by the central bank. End-users are defined as non-financial commercial client entities that are funding obligation for goods and services acquired.

The settlement date for the auction was yesterday.

What is unique about this auction is that it allows BFXITT participants, who are all authorised dealers and cambios to sell to end-users at a price that is not be restricted by the BOJ.

In regular BFXITT auctions, the resale price is restricted. B-FXITT, which means the BOJ Foreign Exchange Intervention & Trading Tool, is intended to facilitate buying as well as selling foreign exchange.

http://www.jamaicaobserver.com/business-report/boj-removes-restriction-price-on-us-20-billion-b-fxitt-auction-resale-recipients-limited-to-end-users_191785