TO: ALL AUTHORISED DEALERS
RE: Discontinuation of BOJ FX Swap Arrangement
Bank of Jamaica hereby advises that the FX Swap Arrangement, which was implemented in January 2020, will be discontinued effective 30 March 2022. In this regard, while the Bank will honour existing contracts until maturity, it will not engage in any new FX SWAP contracts.
The implementation of the FX Swap Arrangement was to provide much needed USD liquidity to Authorised Dealers to promote and encourage forward market transactions. At this time, the level of USD liquidity in the market is adequate to facilitate these types of transaction, and therefore the support from Bank of Jamaica is no longer required in this regard.