Jamaica’s central bank implements measures to discourage hoarding of US dollar
Key Points(5)
- The Bank of Jamaica (BOJ) has indicated that it will be moving to discourage Jamaicans from holding large amounts of U.S.
- In the policy change announced on Monday, the BOJ said that will reduce the incentives deposit taking institutions have for keeping U.S.
- The central bank said it will ask financial institutions to put more of the U.S.
- dollar deposits they have in the Bank of Jamaica.
- This aspect of the new policy will take place in two phases, with financial institutions required to put 15 per cent of all U.S.
The Bank of Jamaica (BOJ) has indicated that it will be moving to discourage Jamaicans from holding large amounts of U.S. dollars.
In the policy change announced on Monday, the BOJ said that will reduce the incentives deposit taking institutions have for keeping U.S. dollar deposits.
The central bank said it will ask financial institutions to put more of the U.S. dollar deposits they have in the Bank of Jamaica.
This aspect of the new policy will take place in two phases, with financial institutions required to put 15 per cent of all U.S. dollar deposits they have in the Bank of Jamaica by April.
That move will effectively force local banks to pay lower interest rates to their customers on U.S. dollar deposits, which it is hoped will act as a deterrent to those who hold onto the U.S. dollar.
