BOJ Governor Says Sale of US$140 Million to Market Satisfied Demand

• Bank of Jamaica (BOJ) Governor, Richard Byles, says the sale of US$140Mn to the foreign exchange market has served to satisfy extraordinary currency demand, which surfaced in recent weeks. 
• The spike was related to the demand for portfolio transactions and seasonal restocking by retailers ahead of the Christmas period.
• Speaking at the BOJ’s quarterly briefing last Thursday, Mr. Byles said this spurred a 5.2% (J$7.07) depreciation in the value of the dollar between October 1 and November 12, “despite normal daily inflows”.
• Additionally, he said it reversed the 1.8% appreciation that occurred in September, “and erased the sense of normal two-way movement in the exchange rate that had been evident for an extended period prior to October 2019”.
• However, Mr. Byles said consequent on the BOJ’s sale of the US$140 million, via five BOJ Foreign Exchange Intervention and Trading Tool (B-FXITT) flash sale operations to authorized dealers and cambios, “we have observed that the exchange rate has adopted an appreciating trend since November 13”.

(Source: JIS)