The official selling rate for the US dollar ended at J$130.47 on Wednesday, rising from $130.06 on Tuesday as sale to Bank of Jamaica under its foreign exchange auction, absorbed US$10 million at an average weighted rate of $131.17.
In Wednesday’s foreign currency trading, dealers bought just over US$27 million at an average rate of J$128.79 and sold over $35.4 million. Overall US$29.4 million of all currencies were bought by dealers and they sold US$38.2 million.
Dealers attempted to sell US$11.35 million to BOJ at rates as high as $134, for US$200,000 and as low as $126.80 for US$1 million. BOJ accepted all bids up to $132.93 and partially up to $133.
BOJ has been buying funds from the market from April when they started the buy side of the BFXITT auction.
On July 11, the central bank will sell US$5 million to the market and buy US$5 million on July 25. In April US$32 million was bought from the market, by BOJ, US$35 million was purchased in May and in June US$19 million. At the auction of Wednesday June 13, the central bank offered to purchase US$10 million buy only US$9 million was offered, the average rate ended at J$132.66 with the highest rate clearing at $133.50. On the June 13, the selling rate in the daily foreign exchange market jumped J$1.29 to JS$131.58 for US$1, a direct result of the BOJ buying, the rate moved even higher on the 14th even as inflows were more than sales on that day.
The central banks purchases helped to steer the Net International Reserves US$69 million higher in May to US$3.175 billion and also grew in April as well from US$3.075 billion at the end of March. At the end of February the NIR was US$3.18 billion.
July and August are two of the months with strong inflows of foreign exchange, but with summer being the prime time of Jamaicans to travel overseas demand tends to be high as well.
BOJ buying pushed US$ rate
July 4, 2018 by IC Insider.com
Filed Under: Feature Stories, FX Market Tagged With: bFxitt, BOJ, British Pound, Canadian dollar, Daily Trading, Emerging markets, FX Market, US Dollar
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