Banks held back from selling all the foreign exchange purchased from the public in past two weeks, forcing the country’s central bank to intervene on three occasions in an attempt to flush out the excess funds. Banks hoarded the equivalent of $12 million up to Wednesday last week and at the close of trading on Thursday after Bank of Jamaica intervened, the surplus climbed to US$13.5 million. On Monday and Tuesday this week, US$8 million was added to the surplus from last week putting it at near $22 million. Thursday’s intervention by the central bank saw a net selling of only US$3.3 million leaving $19 million to come back into the system. It may take a few more days of selling by the central bank and a determination by them to flush out the rest. The central bank have not only sold funds to the market, they have out a range of open market instruments in the market to pull out Jamaican dollars as well as to attract US dollars from those wanting to place surplus funds for 4 or 5 years to yield between 5 and 5.50 percent.
Trading on the forex market on saw a rise from Wednesday’s levels as dealers bought the equivalent of US$42,107,395 compared to US$36,191,438 on Wednesday and sold the equivalent of only US$50,291,235 versus US$39,497,951 on Wednesday. Trading activity lead to the local currency gaining ground against the US and Canadian dollars but remained mixed against the Pound Sterling.
Dealers bought US$38,312,075 compared to US$30,528,721 bought on Wednesday as the buying rate for the US dollar rose by 15 cents to $110.87 and sold US$46,530,185 versus US$36,248,389 on Wednesday with the rate closing 2 cents lower at $111.24. The Canadian dollar buying rate fell by 24 cents to end at $100.83 with dealers buying C$1,360,463 and selling C$1,162,573 with the rate falling by 86 cents to end at $102.01. The Pound closed at $184.36 for the purchase of £1,432,783 with the rate declining by $1.25 while £1,206,987 was sold with the rate rising by $2.62 cents to $188.48. Other currencies bought amounted to the equivalent of US$175,431 while selling accounted for the equivalent of $649,918.
Highs & Lows| The highest buying rate for the US dollar fell by 15 cents to end at $111.35 but the lowest buying and the highest selling rates remained unchanged at $90.18 and $115.56 respectively but the lowest selling rate rose by $1.43 to $91.61.
The highest buying rate for the Canadian dollar put on 55 cents to $103, the lowest buying rate ended unchanged at $80.72. The highest selling rate rose by 5 cents to $104.39 and the lowest selling rate increased by $1.60 to $98.90.
The highest buying rate for the Pound dropped $1.92 to $185.98 while the lowest buying rate fell by 66 cents to $148.24. The highest selling rate rose by $1.36 to $191.10 while the lowest selling rate gained $1.60 to $181.
