The Bank of Jamaica’s current estimates of the fallout in foreign exchange inflows for the 2020/21 fiscal year are in a best-case scenario US$800 million and a worst-case scenario US$1.4 billion.
The BOJ says it has already compensated for a large part of the foreign exchange deficit.
The central bank provided roughly US$700 million in foreign exchange liquidity support to the financial system through different measures, of which US$78 million has been repaid.
The bank notes that while the global forecast is for remittances to decrease by 20 per cent this year, remittances to Jamaica have increased since May, after a very small decline in the first quarter.
The BOJ says this is an indication that Jamaica’s foreign exchange market is adequately funded and that there is no shortage of foreign exchange.