Thursday, 20 March 2014 | Bank of Jamaica pushed down foreign exchange rate for the Jamaican dollar when it intervened by making funds available to Authorized Dealers and Cambios at a rate of US$1 to J$109.346 for resale at US$1 to J$109.396. This comes against the rate continuing to race after the Central Bank issued a release on Sunday stating that they were willing to lend support to the market. In other words, a veiled attempt at saying the market was being manipulated.
On Sunday the BOJ stated “Against the background of recent movements in the exchange rate, Bank of Jamaica wishes to assure the public that it stands ready to provide support to prevent disorderly conditions from emerging in the foreign exchange market. Since the beginning of March 2014 the exchange rate has depreciated by J$0.93 (0.85%) against the US dollar. This movement over the two-week period compares to a J$0.49 (0.45%) depreciation over the previous two weeks. The faster pace of depreciation has occurred despite increased supply in the foreign exchange market, where volumes from earners for the month to date are higher than for January and February 2014.”
Purchases & Sales | Authorized Dealers bought US$44,344,150 at $109.15 which gained a cent but dumped US$66,475,637 or US$22 million more than the amount bought at $109.42, 24 cents less than on Wednesday, as dealers who were hording the currency released a large portion of their holdings. In contrast US$41 million was bought on Wednesday and $39 million sold. Between Friday last and Wednesday, dealers bought US$17.5 million more than they sold resulting in a total of $22.7 million surplus of buying over selling of all currencies traded.
There was buying of C$478,746 at $95.34 that was off by $1.50 and selling of C$358,349 at $1.57 down to $97.53. The buying of the pound amounted to £636,781 at $1.94 down to $177.75 and sold £317,117 at $181.16 at 76 cents less than on Wednesday.
Other currencies sold came to the equivalent of US$667,774 with US$635,271 sold.
The total amount of foreign exchange traded came to the equivalent US$46,467,181 being bought and US$67,955,336 sold.
Highs & Lows | The highest buying rate for the US dollar fell 70 cents to $110.30, the lowest was up 25 cents to $88.76 while the highest selling rate came out unchanged at $113.74 and the lowest was up $1.40 to $89.91.
The highest buying rate for the Canadian dollar is down $1.25 to $98.50, the lowest moved down by 62 cents to $77.44. The highest selling rate was lower by 52 cents at $100.63 and $2.40 came off the the lowest rate to end at $93.30.
The highest buying rate for the British Pound is 10 cents down at $183.10, the lowest buying rate gained 21 cents and ended at $144.84, while the highest selling rate climbed $1.59 to $186.71 and the lowest fell $1.90 to $175.10.
Related post | BOJ suggests FX stability close
