Thread by @CentralBankJA

We’re afraid that the headline on this @JamaicaObserver story is incorrect and may have sent members of #FinanceTwitterJa and others down the wrong track... 1/3 #BOJSpeaks
bit.ly/364UDH8

@JamaicaObserver To clarify, the repo operation in question serves to provide liquidity, not ‘mop it up.” (Mopping up isn’t a thing these days.) This is the same routine weekly J$ auction BOJ does each Monday, done on a Friday this time because the coming Monday was a public holiday... 2/3

@JamaicaObserver Simply put, it’s similar to an FX auction (which is in $USD), except we’re lending money in $JMD, not selling. We announce the amount and banks bid with interest rates. Those allocated receive cash which they pay back w/ interest and give BOJ securities to hold as collateral. 3/3