Dealers bid up rates at BOJ FX auctions

Bank of Jamaica introduced a new system in providing foreign exchange to the local market by offering a weekly amounts for sale, in the first instance. In the latest offering the average rate climbed to $131 as demand exceeded the amount on offer.
Later on, presumably in the winter months, when inflows are much higher then, the auction will accommodate both buying and selling, with the central bank buying or selling as the circumstance dictates.
AT the auction, last week Wednesday, a total 45 bids amounting to $60.9 million chased, the $20 million Bank of Jamaica offered for sale, resulting in an average rate of $131 to buy the US dollar on offer. The auction highest bid was $131.10 to purchase US$2.3 million. In the previous week’s auction, BOJ offered US$10 million that attracted 43 bids amounting to US$29.1 million, with the highest rate at $130.50 to buy $1 million. Bank of Jamaica on Thursday, August 31, had a special unscheduled offer of $35 million available to the market pulling in 31 bids amounting to US$70.2 million chasing the offer. The next auction will see BOJ auctioning off US$30 million this week Wednesday as announced at the start of the month.