From left: Dr Nigel Clarke, finance minister; Richard Byles, Incoming BOJ govenor; Dr Constant Lonkeng Ngouana, IMF resident representative; and John Robinson share a chat before the starting of the foreign exchange market symposium held recently at the Bank of Jamaica in downtown Kingston. (Photo: Norman Thomas)

THE Bank of Jamaica(BOJ) announced recently that its intended foreign exchange platform will be implemented by latest, year 2020. The central bank is in active discussion with the provider and plans are already far advanced, as every effort is being made for the full realisation of this technology in months to come.

Speaking in an interview with the Jamaica Observer at the foreign exchange market symposium held on Wednesday, John Robinson, deputy governor at the BOJ, noted that the mechanism will allow for a trading arrangement where everybody in the market, including all intermediaries, can post their prices so that others can see what they are willing to sell and buy.

“The large clients can also be registered so that at all points during the day they will be able to know the current prices — who is selling what — and people will be able to shop around a lot more. The transparence with prices will be a lot clearer, and that is where efficiency in the market comes from,” he stated.

The deputy governor further pointed out that “banks who trade among each other can settle those transactions directly through their accounts at the BOJ; so in the same way you have like the real time gross settlement (RTGS)— where you have banks transfer funds between each other easily — in the same way people will be able to settle foreign exchange transactions easily over this platform”.

This will be an extension of the existing payment and settlement systems.

Taffi Bryson, acting head of the Market Operations and Analysis Department, further told the Caribbean Business Report that the system, when implemented, will allow for real time settlement; he dubs it an intra-dealer platform.

He added that with the platform “BOJ would be seeking to enroll participants, also providing an aspect for corporate entities to view the codes on the platform. If a code is viewed and liked, then participants will be able to contact the authorised dealer or cambio to express like.”

http://www.jamaicaobserver.com/sunday-finance/new-fx-trading-platform-expected-by-2020_170842