No B-Fxitt sale by BOJ in December

There are unlikely to be any sale of foreign exchange by Bank of Jamaica during December, a release from the central bank suggests.
According to Jamaica’s central bank “market intelligence provided by authorised dealers and cambios on prevailing and prospective market conditions indicates that there is no need for the Bank to add foreign exchange to the market during the first two weeks of December 2017. The B‐FXITT process remains in place and Bank of Jamaica will continue to assess market intelligence going forward and engage with the foreign exchange market as appropriate.
The amounts the central bank made available in November was reduced to US$4 million per auction down from a usual amount of $10 million in the past. Based on historical tends with increase inflows into the system from Mid-December is very unlikely that the central bank will be doing much selling and could in turn start the auction to buy surpluses from the market which is expected to occur from December until April next year.
The change comes against the back ground of Bank of Jamaica reducing their compulsory take from 25 percent to 20 percent which will result in between US$40 and $50 million more available for the public on a monthly basis as well as a clear sign of sell off of foreign exchange by dealers from October.

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