In light of heightened concerns over the lack of US currency available for purchase by Jamaican businesses, the Bank of Jamaica has intervened to augment the supply of US dollars in the market.

The central bank says it sold US $40 m via B-fxitt to authorized dealers and cambios today.

In a release issued this morning, the b-o-j says there has been an increase in the demand for foreign currency due to the regular re-stocking by retailers for the Christmas season.

Further, it says there has been extraordinary demand relating to portfolio transactions.

The BOJ notes that for October 2019, average daily inflow from earners was approximately US $31 m in line with October 2018.

However, driven by the factors noted above, demand has outstripped this supply.

The $40 m injection by the central bank is expected to bring back normalcy to the foreign exchange market.

Meantime, the BOJ says the public’s concern about the recent depreciation in the exchange rate has been noted.

It states that based on Jamaica’s economic fundamentals, the bank does not expect that the recent pace of exchange rate movement will be sustained.

The Central Bank notes that notwithstanding the recent depreciation, inflows into the foreign exchange market remained healthy.

It says it remains committed to maintaining orderly conditions and will only intervene to prevent disorderly market conditions.

The BOJ further notes that is advanced in the development of a trading platform for foreign exchange that will introduce greater transparency and is urging Jamaicans to use forward contracts in managing their foreign exchange needs.