Bank of Jamaica

The Bank of Jamaica, is the central bank of the country. It was established in the year 1960 by the Bank of Jamaica Act. But, it began it's operation from May 1961. The Bank of Jamaica was established with the objectives of administering the financial reserves of the country and promoting the growth of the Jamaican money market and capital market.

Mission of Bank of Jamaica

The mission of the Bank of Jamaica is to devise and implement efficient monetary policies in order to protect the value of the domestic currency.

Major Functions of Bank of Jamaica

Major Functions of Bank of Jamaica are:

Issuance of Jamaican Currency that is Jamaican Dollar Banknotes and coins

Administration of Financial Reserves

Promotion of trade and employment

Maintenance of monetary stability


Other than carrying out these major responsibilities, Bank of Jamaica also elevates local financial markets and backs up major settlement systems. Settlement system is used to execute the transfer of funds.

Monetary policies by Bank of Jamaica

The Bank of Jamaica constitutes the monetary policies with the objective of ensuring the stability of the financial system. Through the monetary policies the Bank also targets to identify the sources of liquidity. Appropriate monetary policies can result in generation of employment opportunities.

Bank of Jamaica does not directly intervene in the matter of ascertaining the prices of goods and services in the economy. It primarily controls the money supply,exchange rates and open market operations in order to maintain price stability. The major two payment systems that are in operation are Funds Transfer System and Automated Clearing House System.