PRESS RELEASE 22 January 2020
BANK OF JAMAICA FX SWAP ARRANGEMENT
On 22 January 2020, Bank of Jamaica (the Bank) issued a notice regarding the introduction of a new instrument available to foreign exchange authorised dealers (ADs) - FX Swap Arrangement.
This instrument is intended to enhance the Bank's management of the foreign exchange market and provides USD liquidity to the market through ADs via a swap arrangement. Under the FX Swap Arrangement, the Bank will sell US dollars to ADs, within a pre-determined limit, at the prevailing market rate, with an agreement to buy back the same amount of US dollars at a time in the future at an agreed forward rate.
In addition to its usual B-FXITT operations, the Bank will utilize the FX Swap Arrangement to smooth out excess volatility and restore orderly conditions in the market.
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Bank of Jamaica published this content on 23 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 January 2020 14:58:01 UTC
