The Jamaican foreign exchange market delivered another big net take with US$11 million net intake for all currencies with the united States dollar delivering a surplus of $8.5 million. The increase net inflows did not prevent the Jamaican dollar from falling as the rate to purchase the US dollar increased.
Friday’s net inflows brought the excess for the week to US$41 million, with each day of the week generating surpluses. At the end of trading, the equivalent of all currencies bought by dealers amounted to US$44,607,197, while US$33,628,271 was sold compared to US$25,142,251 purchased and US$21,013,454 sold on Thursday.
In US dollar trading, dealers bought US$39,865,665 compared to US$21,513,397 on Thursday. The buying rate for the US dollar climbed 35 cents to close at $127.81. 
A total of US$31,296,438 was sold versus US$18,393,384 on Thursday, with the selling rate rising 9 cents to end at $128.37. The Canadian dollar buying rate fell $1.03 to $95.80, with dealers buying C$1,797,979 and selling C$1,566,519 at an average rate that fell 17 cents to $97.38. The average rate for buying the British Pound fell 26 cents to $159.48 for the purchase of £1,948,854 while £760,078 was sold at a rate that dipped $1.56 to end at $161.63.
At the end of trading, dealers sold €162,090 as the selling rate for the Euro, closed at $144.97 for fall of $2.12 from Thursday’s rate, according to data from Bank of Jamaica. Dealers purchased €856,872 of the European common currency at $142.26 after rising $2.61 from the rate on Thursday. The US dollar equivalent of other currencies traded, amounts to US$8,518 being bought and selling of US$3,345.
Highs & Lows| Notable changes to the highest and lowest rates for the regularly traded currencies in the foreign exchange market on Friday, include a jump of $21.08 in the lowest selling rate of the US Dollar to end at $125. The highest buying rate of the Canadian dollar dropped $2.70 to $97.80, while the highest selling rate dived $3.70 to $101 and the lowest selling rate rose $1 to $93. The highest buying rate of the British Pound nosedived $7.80 to $162.85, the lowest buying rate dropped $4.40 to $130.31, the highest selling rate collapsed by $5.72 to $169.56 and the lowest selling rate dived $5 to $155.50. Trading in the Euro resulted in a fall in the highest buying rate of $2.20 to $142.80 and the lowest selling rate jumped $20.87 to $135.40.
US$8.5m surplus leads to J$ fall – Friday
Rigged FX market responds – Thursday
The Jamaican foreign exchange market responded on Thursday to the increasing net inflows into the system, by cutting the selling rates for all four major currencies, as the market delivered another day of surplus inflows.
Thursday’s the net inflows brought the excess in three days to US$30 million, an amount that is in excess of today’s total intake. At the end of trading, the equivalent of all currencies bought by dealers amounted to US$25,142,251, while US$21,013,454 was sold compared to US$44,113,891 purchased and US$32,654,420 sold on Wednesday.
In US dollar trading, dealers bought US$21,513,397 compared to US$39,723,979 on Wednesday. The buying rate for the US dollar fell 26 cents to close at $127.46.
A total of US$18,393,384 was sold versus US$30,231,066 on Wednesday, with the selling rate sliding 9 cents to end at $128.28. The Canadian dollar buying rate rose 66 cents to $96.83, with dealers buying C$2,682,076 and selling C$2,434,616 at an average rate that fell 29 cents to $97.55. The average rate for buying the British Pound dropped $2.57 to $159.74 for the purchase of £1,072,168 while £516,828 was sold at a rate that dipped 83 cents to end at $163.19.
At the end of trading, dealers sold €66,217 as the selling rate for the Euro, closed at $142.85 for fall of $1.58 from Wednesday’s rate, according to data from Bank of Jamaica. Dealers purchased €213,773 of the European common currency at $139.65 after rising 57 cents from the rate on Wednesday. The US dollar equivalent of other currencies traded, amounts to US$13,433 being bought and selling of US$37,481.
Highs & Lows| Notable changes to the highest and lowest rates for the regularly traded currencies in the foreign exchange market on Thursday, include a fall of $1.20 in the highest buying rate of the 
US Dollar to $127.95. The highest buying rate of the Canadian dollar rose $2.30 to $100.50, while the highest selling rate jumped $2.64 to $104.70 and the lowest selling rate dropped $1.70 to $92. The highest buying rate of the British Pound jumped $4.90 to $170.65, the lowest buying rate climbed $3.57 to $134.71, the highest selling rate surged $4.64 to $175.28 and the lowest selling rate rose $2.50 to $160.50. Trading in the Euro resulted in a rise in the highest buying rate of $3.50 to $145, the highest selling rate climbed $4.31 to $149.85 while there was a sharp fall in the lowest selling rate of $23.47 to $114.53.
Rigged – Jamaica’s FX market
Rigged is the best way to describe the Jamaican foreign exchange market. How else can one describe a market where supply is much greater than demand, yet the price keeps rising. What is happening in the foreign exchange market defies logic, and the law of demand and supply.
Bank of Jamaica has a mandate to build up the Net International Reserves to an amount that is well in excess of the more than US$3 billion that it now holds. BOJ is not buying directly from the banks in the open market to add to the reserves other than the automatic surrender of 30-35 percent from gross inflows. From the start of July, to present, the net inflows into the banking system is in the order of US$470 million, with most being in United States dollars. In such a scenario one would expect at least stability in the rate of the Jamaican dollar versus the US dollar, with BOJ intervening to buy off the excess funds. On Tuesday, there was nearly US$15 million surplus into the system with the Jamaica dollar gaining moderately, on Wednesday the surplus of US dollar trading amounts to $9.5 million but the selling rate for the US dollar rose by 14 cents, despite the large net inflows.
Trading closed Wednesday with a surplus of US$11.5 million, as the Jamaican dollar lost ground against the United States dollar but gained against the others.
At the end of trading, the equivalent of all currencies bought by dealers amount US$44,113,891, while US$32,654,420 was sold compared to US$51,024,854 purchased and US$36,510,572 sold on Tuesday.
In US dollar trading, dealers bought US$39,723,979 compared to US$47,917,627 on Tuesday. The buying rate for the US dollar rose 7 cents to close at $127.72. A total of US$30,231,066 was sold versus US$34,533,467 on Tuesday, with the selling rate gaining 14 cents to end at $128.37. The Canadian dollar buying rate rose 77 cents to $96.17, with dealers buying C$1,581,148 and selling C$1,198,795 at an average rate that fell 3 cents to $97.84. The average rate for buying the British Pound rose 36 to $162.31 for the purchase of £2,358,729 while £976,119 was sold at a rate that dipped 49 cents to end at $164.02.
At the end of trading, dealers sold €148,438 as the selling rate for the Euro, closed at $144.43 for fall of $1.24 from Tuesday’s rate, according to data from Bank of Jamaica. Dealers purchased €91,063 of the European common currency at $139.08 after rising 53 cents from the rate on Tuesday. The US dollar equivalent of other currencies traded, amounts to US$102,475 being bought and the selling of US$95,527.
Highs & Lows| Changes to the highest and lowest traded rates for the US Dollar remained moderate on Wednesday. Notable changes to rates for the other regularly traded currencies in the foreign exchange market on Wednesday, include a fall of $3.96 in the highest buying rate of the Canadian dollar to $98.20, while the lowest selling rate jumped $5.70 to $93.70. The highest buying rate of the British Pound dropped $1.05 to $165.75 and the lowest buying rate dived $2.74 to $131.14, the highest selling rate dipped $3.56 to $170.64 and the lowest selling rate rose $1 to $158. Trading in the Euro resulted in a drop of $4.58 in the highest selling rate to $145.54 while there was a jump in the lowest selling rate of $3.20 to $138.
US$14.5M net inflows on Tuesday
The Jamaican foreign exchange market started trading in October on a positive note, with more inflows than out flows of all currencies traded after the market closed on Monday due to the threat of hurricane Mathew.
Trading closed with a surplus of US$14.5 million on Tuesday as the value of the United States dollar and the British Pound lost value against the Jamaican dollar and the euro and the Canadian dollar strengthened versus the local dollar.
At the end of trading, the equivalent of all currencies bought by dealers amount US$51,024,854, while US $36,510,572 was sold compared to US$36,697,304 purchased and US$26,244,697 sold on Friday.
In US dollar trading, dealers bought US$47,917,627 compared to US$33,292,037 on Friday. The buying rate for the US dollar rose 6 cents to close at $127.65. A total of US$34,533,467 was sold versus US$25,030,676 on Friday, with the selling rate falling 4 cents to end at $128.23. The Canadian dollar buying rate rose 32 cents to $95.40, with dealers buying C$1,661,331 and selling C$1,154,174 at an average rate that rose 56 cents to $97.87. The average rate for buying the British Pound dropped $1.20 to $161.95 for the purchase of £1,275,723 while £256,608 was sold at a rate that dipped $2.27 to end at $164.51.
At the end of trading, dealers sold €624,799 as the selling rate for the Euro, closed at $145.67 for rise of 71 cents from Friday’s rate, according to data from Bank of Jamaica. Dealers purchased €213,770 of the European common currency at $138.55 after falling $3.64 from the rate on Friday. The US dollar equivalent of other currencies traded, amounts to US$15,073 being bought and the selling of US$57,257.
Highs & Lows| Changes to the highest and lowest traded rates for the US Dollar remain moderate on Tuesday. Notable changes to rates for the other regularly traded currencies in the foreign exchange market on Tuesday, include a jump of $4.46 in the highest buying rate of the Canadian dollar to $102.16, the lowest selling rate dropped $4.30 to $88. The highest buying rate of the British Pound dropped $1.38 to $166.80 and the lowest selling rate dipped $1 in to $157. Trading in the Euro resulted in a drop of $3.56 in the highest buying rate to $141.44 while there was a jump in the lowest selling rate by $20.27 to $134.80.
Devaluation pushed by NIR build out
Net inflows into Jamaica’s foreign exchange market amounted to US$167.5 million in September, in a month that usually results net outflows with the ending of the peak tourism summer months.
The heavy net inflows did not prevent the value of the Jamaican dollar from slipping during the month from a selling rate of J$127.57 to the US dollar to J$128.27 at the end of September.
For the entire month, there was only one trading day when there was less foreign exchange bought by dealers than the amount they sold with net sales of US$5 million. In contrast, for September 2015, net inflows amounted to just $6.5 million with 11 trading days of negative flows.
The net purchases for September bring the surplus from July to date to US$436 million.
In July and August, the NIR grew by $250 million to US$2.5 billion, well ahead of the target agreed with the International Monetary Fund (IMF), but the IMF is saying the central bank must continue to build up the NIR which is well off the target of the IMF.
The IMF states “Net international reserves (NIR) stood at US$2.4 billion at end-July, nearly US$500 million above the program target, while gross reserves stood at nearly 80 percent of the IMF’s reserve adequacy metric at end-2015. The BoJ’s FX market sales have declined in recent months, and the net FX purchases including the surrender requirement has been about US$388 million in 2016 (up to end-July).”
BOJ reserves climbs by US$250M in early August.
In October 2014 and January 2015 Bank of Jamaica required commercial banks to surrender, in total between thirty percent (30%) to thirty-five percent (35%) up from 25% to £0 percent of foreign currency purchases daily. The surrender requirement to the BOJ for cambios was increased by 5 percentage points to twenty-five percent (25%) of their daily gross foreign exchange purchases from commercial
Positive FX inflows for Jamaica – Friday
Flows in and out of the Jamaican foreign exchange market ended with a surplus of US$10 million on Friday, bringing the net take for September to US$168 million. The impact on rates was mixed, with slippage in the value of the Jamaican dollar against the United States dollar, the British Pound and euro, while it gained against the Canadian dollar.
At the end of trading, the equivalent of all currencies bought by dealers amount US$36,697,304, while US$26,244,697 was sold compared to US$29,696,401 purchased and US$29,483,135 sold on Thursday.
In US dollar trading, dealers bought US$33,292,037 compared to US$26,609,238 on Thursday. The buying rate for the US dollar rose 9 cents to close at $127.59.
A total of US$25,030,676 was sold versus US$27,286,685 on Thursday, with the selling rate rising 7 cents to end at $128.27. The Canadian dollar buying rate dropped $1.77 to $95.08, with dealers buying C$985,077 and selling C$404,100 at an average rate that fell 60 cents to $97.31. The average rate for buying the British Pound rose 38 cents to $163.15 for the purchase of £1,534,021 while £481,891 was sold as the rate climbed 55 cents to end at $166.78.
At the end of trading, dealers sold €208,606 as the selling rate for the Euro, closed at $144.95 for rise of $1.03 from Thursday’s rate, according to data from Bank of Jamaica. Dealers purchased €557,430 of the European common currency at $142.19 after rising $3.88 from the rate on Thursday. The US dollar equivalent of other currencies traded, amounts to US$88,347 being bought and the selling of US$45,171.
Highs & Lows| Changes to the highest and lowest traded rates for the US Dollar remain moderate but notable changes to rates for the three other regularly traded currencies in the foreign exchange market on Friday, include a fall of $2.40 in the highest buying rate of the Canadian dollar to $97.70. The highest buying rate of the British Pound jumped $1.58 to $168.18. Trading in the Euro resulted in a jump of $3.50 in the highest buying rate to $145 while the lowest selling rate fell $22.55 to $114.53.
Jamaica’s FX market balanced on Thursday
Flows in and out of the Jamaican foreign exchange market were in balance on Thursday. The impact on rates was mixed, with slippage in the value of the Jamaican dollar against United States and Canadian currencies and gains against the pound and euro.
At the end of trading, the equivalent of all currencies bought by dealers was US$29,696,401, while US$29,483,135 was sold compared to US$29,131,694 purchased and US$23,158,962 sold on Wednesday.
In US dollar trading, dealers bought US$26,609,238 compared to US$26,470,810 on Wednesday. The buying rate for the US dollar rose 18 cents to close at $127.50. A total of US$27,286,685 was sold versus US$21,617,895 on Wednesday, with the selling rate rising 9 cents to end at $128.20.
The Canadian dollar buying rate jumped $2.68 to $96.85, with dealers buying C$2,401,978 and selling C$2,067,916 at an average rate that climbed $1.56 to $97.91. The average rate for buying the British Pound fell $1.11 to $162.77 for the purchase of £900,326 while £381,123 was sold as the rate fell 20 cents to end at $166.23.
At the end of trading, dealers sold €102,860 as the selling rate for the Euro, closed at $143.92 for a fall of 25 cents from Wednesday’s rate, according to data from Bank of Jamaica. Dealers purchased €96,008 of the European common currency at $138.31 after falling $1.09 from the rate on Wednesday. The US dollar equivalent of other currencies traded, amounts to US$9,077 being bought and the selling of US$7,432.
Highs & Lows| Changes to the highest and lowest traded rates for the US Dollar remain moderate but notable changes to rates for the three other currencies in the foreign exchange market on Thursday, include a rise of $2.24 highest buying rate of the Canadian dollar to $100.10. The highest buying rate of the British Pound dropped $2.40 to $166.60, the highest selling rate rose $1.93 to $174.20 while the lowest selling rate fell $3.75 to $158. Trading in the Euro resulted in a rise of $3.10 in the highest selling rate to end at $149.80 and a gain of $2.58 in the lowest selling rate to $137.08.
Net FX inflows up by US$6m – Wednesday
Net inflows into the foreign exchange market in Jamaica delivered another day of strong surplus of US$6 million on Wednesday. The net inflows did not prevent further slippage in the value of the Jamaican dollar against the main currencies it usually trades against except for the Canadian currency.
At the end of trading, dealers bought US$29,131,694 and sold only US$23,158,962 compared to US$38,392,249 purchased and US$32,810,695 sold on Tuesday, of all currencies.
In US dollar trading, dealers bought US$26,470,810 compared to US$33,392,630 on Tuesday. The buying rate for the US dollar fell 3 cents to close at $127.32. A total of US$21,617,895 was sold versus US$30,026,760 on Tuesday, with the selling rate rising 4 cents to end at $128.11. 
The Canadian dollar buying rate dropped $1.85 to $94.17, with dealers buying C$876,284 and selling C$459,094 at an average rate that fell 59 cents to $96.35. The average rate for buying the British Pound rose 32 cents to $163.88 for the purchase of £1,467,810 while £848,877 was sold as the rate jumped $1.41 to end at $166.43.
At the end of trading, dealers sold €72,982 as the selling rate for the Euro, closed at $144.17 for a rise of 71 cents from Tuesday’s rate, according to data from Bank of Jamaica. Dealers purchased €97,926 of the European common currency at $141.30 after falling $1.90 from the rate on Tuesday. The US dollar equivalent of other currencies traded, amounts to US$16,230 being bought and the selling of US$10,872.
Highs & Lows| Notable changes to the highest and lowest traded rates, for the Jamaican dollar in the foreign exchange market on Wednesday, include a rise of $1.90 in the lowest selling rate of the Canadian dollar to end at $93.50. The highest buying rate of the British Pound rose $1.66 to $169, the highest selling rate fell by $1.07 to $172.27 while the lowest selling rate climbed $1.75 to $161.75. Trading in the Euro resulted in a drop of $4.79 in the highest buying rate to end at $141.10 and a fall of $1 in the lowest selling rate to $134.50.
Net FX inflows up US$5.5m – Tuesday
Net inflows into the foreign exchange market in Jamaica delivered another day of strong surplus of US$5.5 million on Tuesday, leading to gains in the value of the Jamaican dollar against the main currencies it usually trades against except for the United States currency.
At the end of trading, dealers bought US$38,392,249 and sold only US$32,810,695 compared to US$40,421,717 purchased and US$30,050,926 sold on Monday, of all currencies.
In US dollar trading, dealers bought US$33,392,630 compared to US$36,514,078 on Monday. The buying rate for the US dollar rose 9 cents to close at $127.35.
A total of US$30,026,760 was sold versus US$27,511,067 on Monday, with the selling rate rising 11 cents to end at $128.07. The Canadian dollar buying rate rose 22 cents to $96.02, with dealers buying C$2,658,342 and selling C$1,994,738 at an average rate that fell 29 cents to $96.94. The average rate for buying the British Pound rose $1.15 to $163.56 for the purchase of £2,171,012 while £826,625 was sold as the rate declined 11 cents to end at $165.02.
At the end of trading, dealers sold €177,149 as the selling rate for the Euro, closed at $143.46 for a fall of $1.99 from Monday’s rate, according to data from Bank of Jamaica. Dealers purchased 
€168,789 of the European common currency at $141.30 after jumping $3.25 from the rate on Monday. The US dollar equivalent of other currencies traded, amounts to US$19,806 being bought and the selling of US$10,499.
Highs & Lows| Notable changes to the highest and lowest traded rates, for the Jamaican dollar in the foreign exchange market on Tuesday, include a fall of 84 cents in the highest buying rate of the British Pound to $167.34 and a rise of $2 in the lowest selling rate to $160. Trading in the Euro resulted in a rise of 89 cents in the highest buying rate to end at $145.89, a fall of $3.35 in the highest selling rate to $146.50 and a jump of $20.97 in the lowest selling rate to $135.50.
Net FX inflows up US$10m – Monday
Net inflows into the foreign exchange market in Jamaica delivered another day of strong surplus of US$10 million on Monday, leading to gains in the value of the Jamaican dollar.
At the end of trading, dealers bought US$40,421,717 and sold only US$30,050,926 compared to US$28,147,514 purchased and US$18,727,447 sold on Friday, of all currencies.
In US dollar trading, dealers bought US$36,514,078 compared to US$23,819,249 on Friday. The buying rate for the US dollar rose 1 cent to close at $127.26. A total of US$27,511,067 was sold versus US$15,477,475 on Friday, with the selling rate falling 3 cents to end at $127.96. 
The Canadian dollar buying rate fell 73 cents to $95.80, with dealers buying C$2,585,550 and selling C$2,084,485 at an average rate that fell 41 cents to $97.233. The average rate for buying the British Pound dived $1.87 to $162.41 for the purchase of £1,404,417 while only £372,355 was sold as the rate rose $1.15 to end at $165.13.
At the end of trading, dealers sold €138,057 as the selling rate for the Euro, closed at $145.45 for a rise of 48 cents from Friday’s rate, according to data from Bank of Jamaica, dealers purchased €402,803 of the European common currency at $138.05 after it dropped $4.95 from the rate on Friday. The US dollar equivalent of other currencies traded, amounts to US$19,393 being bought, while US$17,477, was sold.
Highs & Lows| Notable changes to the highest and lowest traded rates, for the Jamaican dollar in the foreign exchange market on Monday, include a drop of $19.46 in the lowest selling rate of the US dollar to end at $104.04. There was a fall of $1.79 in the highest buying rate for the Canadian Dollar to end at $97.70. Trading in the British Pound resulted in a rise of $1.18 in the highest buying rate to close at $168.18, a fall of $1.66 in the lowest buying rate to $133.22 while the lowest selling rate dropped $1.70 to $158. Trading in the Euro resulted in a dive of $24.47 in the lowest selling rate to $114.53.