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BOJ’s rules-based tool for buying or selling foreign exchange through eligible market participants.
Save conceptB-FXITT is the Bank of Jamaica Foreign Exchange Intervention Trading Tool. It provides a rules-based way for the central bank to buy or sell foreign exchange with eligible market participants. A sale supplies foreign money to successful participants in return for the required payment. A purchase operates in the opposite direction. The tool is a transaction mechanism, separate from a general promise about the future .
The operation notice establishes the offered amount, application window and settlement date, together with bidding and allocation conditions. It can also specify which customers may receive dollars through resale and how the resale price is constrained. BOJ’s general description and the current notice must be read together: a reader should use the specific notice’s pricing provisions rather than assume all operations use identical settlement prices.
Suppose a bank eligible for an operation submits a bid to buy dollars for commercial customers. Its order states a quantity and a price. Whether it receives all, part or none of that quantity depends on the eligible bids, the available offer and the allocation rule. If the operation restricts resale to certain customer payments, winning an allocation does not remove those downstream conditions.
An announced amount is what BOJ offers, not automatically the amount finally sold. Results establish allocations and accepted pricing; settlement is the subsequent exchange of funds under the operation’s timetable. Nor does a single intervention prove that the will move in a particular direction. Other market transactions and conditions continue to matter.
BOJ offers US$30 million with limits on resale pricing and recipients