Durrant Pate/Contributor

Jamaica’s money market operations are going through a phase in which the yield on government securities is slightly inching down, the repo market is returning to relative stability, and the foreign exchange market is showing signs of stability.

The yield on the Bank of Jamaica’s (BOJ’s) most recent 30-day Certificate of Deposit (CD) auction declined modestly. The average yield for successfully allocated bids was at 5.80% on February 13, 2026, down from 5.88% the prior week. 

The highest bid rate for full allocation was 7.499%. Total bids reached J$40.19 billion with a J$24 billion offer size, amounting to a bid-to-offer ratio of 1.67x, which is higher than the 1.37x from the previous week. 

Additionally, the BOJ conducted a 14-day Repurchase Operation with deposit-taking institutions in the amount of J$1 billion. The total value of bids received was $1 billion, implying a 1.0x bid-offer ratio. 

The weighted average yield was 5.79%, 6 basis points lower than the 5.85% in the previous auction. 

BOJ set to hold interest rate steady

The next BOJ policy decision is February 23, 2026, and it is expected that the central bank will continue to maintain the current policy rate of 5.75% to prevent second-round effects on selected goods and services, including household maintenance, transport, energy, and personal care items, while supporting the broader economic recovery. 

However, the BOJ is emphasising that relying exclusively on interest rate adjustments to address inflationary pressures could entail costly trade-offs. As such, money market analysts foresee the BOJ utilising more foreign exchange market interventions to mitigate hurricane-related inflationary effects without excessive changes to its policy rates in the near term. 

The Government of Jamaica (GOJ) has announced the re-opening of its Benchmark Investment Notes due 2030, 2035, 2040 and 2046 with an aggregate offer volume of J$40 billion. The subscription date for the auction was Tuesday, February 17th, with settlement tomorrow, February 20th.

FX market 

In the Foreign Exchange (FX) market last week, the Jamaican dollar appreciated by 0.08% with the USD selling rate moving from J$157.14 to J$157.02. The BOJ is scheduled to intervene in the market tomorrow, February 20, 2026, through its B-FXITT Standard Sale Operation. 

The announced intervention likely anchored short-term exchange rate expectations, supporting the modest appreciation.