, 24 tweets, 8 min read Read on Twitter
JA Finance Twitter, I have a story for you. I got invited to the @CentralBankJA press conference on Thursday, August 29 to represent “JA Finance Twitter”.

We are seeing a new age in communication policy. Big up to @TonycusGannicus and his crew doing great work.

//Thread
I got a chance to ask the governor a question and his response is newsworthy and I haven’t seen anyone else report it yet, so I believe it is breaking news.

If it has been reported, please forgive me. I think it’s very significant to discuss either way. We have homework to do.
The press conference was about the policy rate cut. But before I go into the content, let me share about the experience. The entire thing felt surreal.

When I reached the entrance, the lady at the front asked me which organization I am from. Instinctively I said “just myself”.
She looked very puzzled.

I got in touch with @TonycusGannicus and he told me to tell her that I was covering the event on Twitter.

She looked equally confused...lol.
Eventually Tony had to actually confirm it with her that I was invited and confirmed my story and she let me in.
I sat down and asked if I could ask the governor a question, which they fully obliged and put me in front of a mic.

Picture this scene. I am sitting in front of the governor and all the deputy governors. I didn’t get the memo that everybody would be in a suit.
I was in a bright-ish blue, button up shirt (sleeves rolled up) and jeans. Everybody else is in business formal attire (men in suits). I don’t come from any traditional media house.

Saying I stick out like a sore thumb is an understatement. Nonetheless...I press on.
My turn to ask a question.

I lean into the mic and introduce myself “I am Marc Gayle. I represent Finance Twitter”.

They all looked equally puzzled/fascinated and I heard a quiet murmur in the room. Nonetheless...I press on.
Paraphrasing from memory and notes and shortened for Twitter brevity.

Me: Given that BOJ has cut rates so many times in the last few years, what obstacles do you see in the monetary transmission system that prevents rate cuts from filtering fully through the system.
For an explanation and details on what the Monetary Transmission System is, why it matters and how it affects us, see this thread I did back in June when Governor Byles was announced.

<Again Paraphrasing from Memory & Notes & Shortened for Twitter Brevity>

Governor Byles: There are a number of factors, but I will highlight two, that hinder the full transmission of @CentralBankJA policy decisions.

1) Contractionary fiscal policy from GOJ (in other words...
...GOJ’s current fiscal policy is very restrained due to the IMF Programme and the new, correct, debt reduction programme GOJ is currently on).

My aside: This programme pursued by GOJ has created the room for private investors to search for higher rates in equities and other...
...investment opportunities.

Note that it is this reason why I issued that challenge to the MoF in this thread 👇🏾👇🏾👇🏾



I don’t think the MoF should abandon the current restraint, but tweaks can be made. I think this is one of them.
Governor: 2) Abnormally high FX deposits from DTIs. I believe that up 40% of all deposits from DTIs at BOJ are in foreign currencies. So our rate cuts don’t affect those.

My aside: The overnight rate that BOJ pays only applies to JMD deposits.
Governor: In fact, if you were to do a little digging [Me: This is a huge hint and nudge that I SHOULD dig], you would find that there are actually just a handful of DTIs that actually have most of that 40% in foreign currency deposits.
My Translation: There are a handful (I suspect 2 or 3) of DTIs (likely banks) that have a large chunk of their customer deposits in a foreign currency.

They are in effect betting against the JMD, the Jamaican economy and this new economic paradigm.
So, JA Finance Twitter, let’s get to digging. Let’s find out which DTIs could be partially responsible for the rate cuts not making their way into the real economy.

Then let’s just shine a little sunlight on them and just share the data.

Let’s see what happens from there.
Please note, neither myself nor the governor were blaming these DTIs for being the only obstacle in the monetary transmission system.

But according to him, they are 1 obstacle. There is only so much he can do.

So let’s see if a little sunlight can help this issue.
cc: @guruintraining_ @JCKNIGHT2 @Devrhoid @ashdanej @rtrowe @5Solae @MoneyMax101 @SmartStephen @Julianinvests_ @kalilahrey @worrellscott70

I am sure I missed people, so please tag them and let’s get this RT’d and get the digging going.
If you don’t want to publish any data for whatever reason, DM me.

I know it is a long shot and we are just the “articulate minority”, but let’s see if we can actually make a change and free up the monetary transmission system a little.
Some may be cynical that we can make any change. Then again, who would have ever thought that some random dude (that doesn’t work in the Finance or Media industry but sells Tote Bags) could ever be asking the sitting governor of the Central Bank questions about monetary policy?
After all of that, there were finger foods and I got a chance to meet Governor Byles and he asked me more about Twitter.

In fact, he touched a Gleaner reporter that was nearby and said to him: You see, people get their news from everywhere these days, not just you guys.
That quote was paraphrased.

@CentralBankJA is actively listening to what we say on this app, and our responses are helping to inform their policy making decisions.

Let’s not waste this opportunity to have a significant impact.
Also, this article partially covers the governors comments on the monetary transmission system I asked about.

amp.jamaicaobserver.com/business-repor…
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