Jamaica’s Central bank has just announced the issue of two Special Variable Rate Certificates of Deposit targeted at Primary dealers to augment its liquidity management operations. The issues which are variable rate instruments are being offered from today Wednesday, 12 June 2013 and will be opened until to Tuesday, 18 June 2013. The instruments are:
- A 183-day Certificate of Deposit, for a limited nominal amount of $3.0 billion. The instrument re-prices quarterly at 0.15 percentage point above the three month GOJ Treasury Bill rate existing at the start of each repricing period. The initial coupon for the first three months is 6.77 per cent per annum. This offer is extended to all Primary Dealers and commercial banks, from 12 June 2013 to 18 June 2013.
- A 365-day Certificate of Deposit, for an unlimited amount. The instrument re-prices quarterly at 0.23 percentage point above the three month GOJ Treasury Bill rate existing at the start of each re-pricing period. The initial coupon for the first three months is 6.85 per cent per annum. This offer is extended to all Primary Dealers and commercial banks, from 12 June 2013 to 18 June 2013.
This is the second such issue in weeks as the most recent one closed last week Friday and seemed to have delivered a fair amount of foreign currency to the central bank.
[…] to beef up the foreign currency reserves. The BOJ has quickly, as the previous CD issue closed, issued two more to pull more foreign exchange out of the […]