offer size. this limit helps to make smaller dealers and participating cambios more competitive and puts pressure on larger institutions to improve their margins and the quality of their service in order to keep their market share. additional measures will be implemented to improve the service delivery of dealers to end users, including limits 1 / 4 bis - central bankers'speeches on the size of open positions dealers are allowed to take and the adoption of a foreign exchange market code of conduct governing the behaviour of intermediaries with their customers. all that is required from you, the end - user, is that you provide your dealer with good information about your foreign currency demand and supply over a four - week horizon. that information helps to inform us about what supply or demand augmentation may be needed. however, please be aware that it is not, as i have been hearing in some reports, an order that you are placing for your share of the intervention funds. therefore, b - fxitt is designed to foster more competitive behaviour amongst authorised dealers and cambios, rewarding the dealers who provide the best service and margins to customers and disadvantaging those who do not. how well this will work to your benefit, as with all consumer - oriented measures in competitive markets, depends on you. are you reaping your rewards by getting the best service and margins from your dealer, whether you are selling or buying us dollars, pounds or euros, or even renminbi? speaking of disadvantaging those who make poor decisions, during the month of may this year, before b - fxitt was introduced, boj intervened in the market with sales of us $ 240 million despite all indications that there was adequate supply. we sold those funds at over j $ 130. 00. perhaps you heard about this. we bought back most of it in the months that followed and at cheaper rates closer to j $ 129. 00. someone lost millions of jamaican dollars on a bad bet but i would not be surprised if you never heard about that. since the introduction of b - fxitt, market participants apparently failed to learn from the experience and failed to pay attention to the increase in available information. during august, in the face of moderate movements in the exchange rate, net demand pressures began to build up in the system. by september, some people lost their nerve, aided, i am sure, by another unhealthy dose of fear - mongering designed to support passionate exhortations for the

brian wynter : modernizing jamaica's foreign exchange market - the pivot to inflation targeting keynote address by mr brian wynter, governor of the bank of jamaica, at the 7th annual national asset - liability management americas conference, santiago, 25 may 2018. * * * introduction buenos daas, chile, que'onda?! chairperson, mr alexandre tombini, fellow speakers and panellists, our hosts, central banking publications, colleagues, ladies and gentlemen, good morning and greetings from jamaica. i am happy to be here in chile, not just for the beauty of the country or to brush up on my spanish, but also with an ulterior motive. bank of jamaica is preparing to implement full - fledged inflation targeting and, given that banco central de chile has been a pioneer in this area since the 1990s, we are looking forward to learning from their experience. in addition, central banking publications has been an invaluable source of information, training and networking for central bankers around the world. so i am grateful and happy to take part in an event organised by them and to have the opportunity to address this national asset - liability management americas conference. jamaica's economic reform programme and central bank modernisation for several years, the central bank in jamaica has been operating an'inflation targeting lite'policy regime. i am sure our colleagues in chile will confirm that full - fledged inflation targeting is not something to jump into all of a sudden unless you already have the good fortune of a conducive economic environment. that environment is now emerging in jamaica with the remarkable successes of an ambitious economic reform programme that is now beginning its sixth year. for jamaica to be in a position to consider adopting price stability as the central bank's primary objective and the use of the interest rate lever as its main policy tool, several things had to happen first. since high public debt and fiscal dominance will undermine the effectiveness of any central bank, fiscal sustainability is critical to allowing the central bank the breathing space it needs to conduct an effective monetary policy. once fiscal operations begin to crowd in the private sector and net export earnings increase, a sustainable current account balance becomes possible. then, the political economy limitations on exchange rate flexibility in a hyper - open economy like jamaica's diminish considerably thereby improving the central bank's ability to manage internal and external shocks. in the short space of a few recent years, jamaica has lived through 1 / 5 bis - central bankers'speeches