The Bank of Jamaica (BOJ) intervened both on Thursday and on Friday to brace the Jamaican dollar from its continual depreciation against the greenback.

On October 16, it drew down US$30 million from the net international reserves (NIR) and did so again on October 17 with a further US$30 million.

This is the 23rd intervention this year, with the BOJ pumping US$620 million into the market, about 10 per cent of the total trading volumes.

The International Monetary Fund (IMF) has cautioned that the BOJ must stop the frequent interventions, but the BOJ may see it as necessary to create stability and not fester panic with a runaway Jamaican dollar nearing the J$200-US$1.00 mark.

Inflation at 5.2 per cent is within the set four to six per cent range, the NIR is now in excess of US$6 billion, and unemployment is at 3.3 per cent.

Yes, receipts from tourism and remittances are down, and economic activity is a bit stagnan,t but the NIR remains relatively high at US$6.15 billion and provides that necessary buffer.

With the NIR at US$6.15 billion as at the end of August 2025, this is an increase of 23 per cent compared to last year. This spells the equivalent of 30.7 weeks of goods and services imports, which is way above the international benchmark of 12 weeks.

The IMF is calling for the Jamaican dollar to move more freely and that the BOJ is keeping the exchange rate more stable than it would naturally be. The multilateral agency wants the currency to reflect real supply and demand in Jamaica.

It’s a bit like saying a kid should do anything to express their true character and should not have to be reined in. Parents will understand this here.

Jamaica has a somewhat floating currency; it is not fixed like Barbados. In Jamaica, the exchange rate is set by the market, not the government.

The BOJ is putting a brace on the dollar so that it doesn’t go too out of control and disrupt the economy. In other words, the BOJ doesn’t want to see the economy choking on its currency. It is providing a Pepto Bismol for the currency’s acid reflux.

What must be borne in mind is that fuel and food costs Jamaica over US$3 billion, and if allowed to remain unattended, could push up prices that impact the vast majority of Jamaicans (income per capita of around US$7,000). Who will shield those Jamaicans from the ravishes of inflation and place staples beyond their reach?

That’s why the BOJ steps in to prevent wild fluctuations.