Business confidence rising again

Corporate executives Perception of Present and Future Business Conditions increases in the latest survey done on behalf of Jamaica’ central bank for September this year.
The Present Business Conditions Index increased to 106.6, up from 100.8 recorded in the previous survey in July. The Future Business Conditions Index also increased to end at 128.2 relative to 122.7 in the previous survey in July. The increase in the Present Business Conditions Index reflected a rise in the number of respondents of the view that conditions are “better, ”the report from Bank of Jamaica stated. The out turn for the Future Business Conditions Index mainly reflected a decrease in the proportion of respondents who believe that conditions will be “worse.”
Future Business Conditions fell from a peak of 155.1 in October 2016, but fell since then and has bounced around quite a bit. The recent decline seems to have coincided with the slippage in the exchange rate of the Jamaican dollar.

More gains for Jamaican dollar

The Jamaican dollar gained almost one percent in value for the past week, with the selling rate ending the week at J$132.55 to one US dollar, an improvement over the J$133.80 it was sold for at the close of the previous week.
The local currency closed on Thursday with the selling rate at $133 and buying at $131.77, on Friday the buying rate closed at $131.33 or 44 cents less than on Thursday.
Unlike the previous week when dealers bought $48.8 million in US currency and the equivalent of US$56.6 million in all currencies and sold $46 million in US currency and US$53.2 million in all currencies, this past Friday only US$32 million was purchased in United States dollars and US$34.8 million in all currencies with US$43.74 million sold in US dollars with a total of US$44.67 million of all currencies.
On Wednesday coming, Bank of Jamaica will have it last scheduled sale for October when it auctions off US$10 million to the market that could lead to further revaluation of the local dollar.

Jamaican dollar makes strong gains

The Jamaican dollar recovered the losses suffered at the close of trading on Wednesday as the selling rate closed on Thursday at $133 to US$1 as dealers sold US$40.57 million, down from $133.55 on Wednesday as US$42.75 million was sold.
Dealers bought just US$30.3 million on Thursday at an average of $131.77, down from $132.26 in purchasing US$45 million. Total foreign exchange traded on Thursday amounted to US$38 million being bought by dealers and sales of US$47.9 million. the amount purchased by dealers on Wednesday was boosted by sale of US$10 sold by Bank of Jamaica through their B-FXITT weekly auction.

BOJ FX sale pushes rate down

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BOJ sold US$11M in today’s BXFITT auction.


The average rate for the Jamaican dollar auctioned by Bank of Jamaica in today’s B-FXITT Standard Intervention Auction came out at $135.42 down from $136.55 at last week’s auction.
Bank of Jamaica offered US$11 million for sale in today’s B-FXITT auction with 42 bids received covering US$23 million. Last week 41 bids were received amounting to $26.15 million for US$11 million on offer.
The country’s central bank will be offering US$41 million in sales over the next four weeks, including $11 million next week and US$10 million for the other three weeks up to October 17.
Today’s average rate compares with an average buying rate of $134.612 for purchase of US$33.75 million in Tuesday’s foreign exchange trading and an average rate of $135.56 with US$37.67 million being sold. On Monday, Dealers bought US$42.19 million at an average of $134.87 and sold US$42.19 at $135.95.
On Wednesday, the foreign exchange market closed with dealers buying US$56.88 million in all currencies which included US$49.86 million in US dollar currency at an average rate of $134.73 and selling a total of US$519 million in all currencies with the US dollar accounting for US$38.27 million at an average of $135.65, up slightly on Tuesday selling rate.

BOJ pumped US$65M in FX market last week

Bank of Jamaica (BOJ) scheduled B-Fxitt auction last week saw 43 bids seeking to purchase US$39.9 million but only $15 million was on offer, leaving a large amount of unsatisfied demand.
Only 17 bids succeeded in getting a portion of the funds offered for sale, but then not every bid really wanted the funds. The bids left the average rate at $138.19, with $137.90 being the lowest rate that succeeded. The lowest fully successful bid was $137.97 for US$1 million. The lowest bid received was $131.10 to purchase US$1.5 million.
On Friday, BOJ offered US$40 million in what they called a flash intervention tool. On Friday August 31, last year BOJ also had a flash intervention sales that pushed the amount of buying in the foreign exchange market on that day to US$76 million. BOJ sold US$5m on the Wednesday of that week.
The flash intervention this past week, was clearly to satisfy the unmet demand from Wednesday’s auction, 42 bids were presented amounting to US$76.9 million leaving U$26.9 million of unmet demand. The average rate declined to $137.49, with the lowest accepted bid price being $136.65 and the highest being $138.70. The lowest bid that was fully allocated was US$8 million at $137.00. Bids came in as low as $129. The lowest bid that had some success was $136.65, and this compares with $137.90 on Wednesday, suggesting that those bids that did not succeed included a large amount of low bids made to satisfy the requirement that all dealers must put in a bid. On Wednesday, this week

BOJ sold US$65M into the FX market last week.

BOJ will be carrying out their usual auction at which US$15 million will be made available, to be followed by US$10 million each, on September 5 and 12.
On Thursday, dealers bought US$33.9 million at $136.37 and sold US$35.3 at $137.96, up from a rate of $137.48 on Wednesday. On Friday, US$73.2 million was purchased by dealers at $136.75 and they sold US$46.2 million at $137.90. On Monday dealers bought US$45.5 million at $136 and sold US$50.3 million at $137.52, a fall from Friday’s Average rate.

Investors push interest rate to 1.74%

Liquidity remains high, in the Jamaican financial market with investors driving the average to 1.74 percent on Bank of Jamaica (BOJ) 30 days certificate of deposit earlier this week, as demand of $24 billion chased $8.5 billion on offer.
In mid -July, more than $50 billion in government bonds expired with interest, but government took up less than $15 billion in new bonds, as it paid back the bonds in cash, using a large draw down from funds held at Bank of Jamaica by Public sector entities, amounting to $50 billion.
At the end of June, Public sector entities deposit at BOJ was $97 billion but fell to $46 billion after the payout of the bond. The payout added to the high level of liquidity in the market that helped drive interest rates down to 2 percent at the mid-July Treasury bill Auction.
On Tuesday, July 31, applications were received by BOJ for $8.5 billion BOJ 3 percent Certificate of deposit through a competitive price auction. The issue attracted 61 bids amounting to $24 billion, only 41 bids were successful, with the average yield of 1.74 percent. The lowest submitted rate was 1.39999 percent for $40 million and the highest was 6 percent for $40 million. The highest rate for full allocation was 1.83 percent in the amount of $100 million.
The average rate is below BOJ’s overnight rate of 2 percent and the last 91 days Treasury bill rate of 1.95963 percent.

Jam$ falls vs US rise with others- Wednesday

The Jamaica dollar slipped moderately in value at the close of foreign currency trading on Wednesday against the US dollar but gained against the others.
Inflows of all currencies amounted to the equivalent US$30.57 million compared to US$37.57 million bought on Tuesday and sold US$42.74 million compared to US$42.54 million sold on Tuesday.
At the close of foreign currency trading, dealers sold US$41.45 million, 5 cents more than on Tuesday with the US dollar selling rate closing at J$125.42, compared to J$125.37 in the sale of US$40.38 million on Tuesday. Purchases of the US currency by dealers, amounted to US$28.57 million, with the average rate adding 4 cents to end $124.04, compared to US$35.51 million, with the average rate of $124 on Tuesday.
At mid-day on Wednesday dealers purchased US$13.07 million at an average rate of J$124.36 and sold $14.19 million at an average of J$125.26. At mid-day on the previous trading day, dealers purchased US$ US$13.07 million at an average rate of J$124.36 and sold $14.19 million at an average of J$125.26.
The Jamaican dollar closed trading, with the selling rate for the Canadian dollar, falling to J$97.43 from J$100.50 at the close on Tuesday. The selling rate for the British Pound declined to J$167 from J$171.54 previously and the euro declined versus the Jamaican dollar to J$151.76 to buy the European common currency, versus the prior selling rate of J$152.19.

Jamaican$ falls in value – Tuesday

The Jamaica dollar slipped moderately in value at the close of foreign currency trading on Tuesday against all the main currencies it mostly trade against, except the pound.
Inflows of all currencies amounted to the equivalent US$37.57 million compared to US$63.21 million bought on Monday and sold US$42.54 million compared to US$63.48 million sold on Monday.
At the close of foreign currency trading, dealers sold US$40.38 million, 5 cents more than on Monday with the US dollar selling rate closing at J$125.37, compared to J$125.32 in the sale of US$46.64 million on Monday. Purchases of the US currency by dealers, amounted to US$35.51 million, with the average rate falling 33 cents to $124, compared to US$58.09 million, with the average rate of $124.33 on Monday.
At mid-day on Tuesday dealers purchased US$13.07 million at an average rate of J$124.36 and sold $14.19 million at an average of J$125.26. At mid-day on the previous trading day, dealers purchased US$25.27 million at an average rate of J$124.58 and sold $19.78 million at an average of J$125.24.
The Jamaican dollar closed trading, with the selling rate for the Canadian dollar, rising to J$100.50 from J$98.23 at the close on Monday. The selling rate for the British Pound declined to J$171.54 from J$172.28 previously and the euro rose versus the Jamaican dollar to J$152.19 to buy the European common currency, versus the prior selling rate of J$151.70.

Jamaican$ gains against all – Monday

The Jamaican dollar gained further ground at the close of foreign currency trading on Monday against all the four main currency it mostly trade against daily.
Inflows of all currencies amounted to the equivalent US$63.21 million compared to US$35.26 million bought on Friday and sold US$63.48 million compared to US$37.86 million sold on Friday.
At the close of foreign currency trading, dealers sold US$46.64 million, 21 cents less than on Friday with the US dollar selling rate closing at J$125.32, compared to J$125.53 in the sale of US$29.69 million on Friday. Purchases of the US currency by dealers, amounted to US$58.09 million, with the average rate rising 58 cents to $124.33, compared to US$29.47 million, with the average rate of $123.75 on Friday.
At mid-day on Monday dealers purchased US$25.27 million at an average rate of J$124.58 and sold $19.78 million at an average of J$125.24. At mid-day on the previous trading day, dealers purchased US$8.2 million at an average rate of J$124.37 and sold $7.46 million at an average of J$125.44.
The Jamaican dollar closed trading, with the selling rate for the Canadian dollar, declining to J$98.23 from J$100.96 at the close on Friday. The selling rate for the British Pound declined to J$172.28 from J$174.70 previously and the euro fell versus the Jamaican dollar to J$151.70 to buy the European common currency, versus the prior selling rate of J$152.09.

More recovery for Jamaican$ – Friday

The Jamaica dollar gained further ground at the close of foreign currency trading on Friday against the US and the Canadian dollars and the euro as volumes increased over the previous week.
Dealers bought US$201 million in all currencies, up from US$191 million bought in the previous week and sold US$217 million, compared to US$210 million in the prior week. Actual US dollar purchases by dealers amounted to US$178 million from US$166 million in the prior week and sold US$190 million including US$15 sold to Bank of Jamaica in the BFXITT auction, compared to US$184 million previously.
Inflows of all currencies amounted to the equivalent US$35.26 million compared to US$34.79 million bought on Thursday and sold US$37.86 million compared to US$31.28 million sold on Thursday.
At the close of foreign currency trading, dealers sold US$29.69 million, 4 cents less than on Thursday with the US dollar selling rate closing at J$125.53, compared to J$125.57 in the sale of US$27.16 million on Thursday. Purchases of the US currency by dealers, amounted to US$29.47 million, with the average rate dropping 55 cents to $123.75, compared to US$32.90 million, with the average rate of $124.30 on Thursday.
At mid-day on Friday dealers purchased US$8.2 million at an average rate of J$124.37 and sold $7.46 million at an average of J$125.44. At mid-day on the previous trading day, dealers purchased US$12.17 million at an average rate of J$124.70 and sold $7.66 million at an average of J$125.49.
The Jamaican dollar closed trading, with the selling rate for the Canadian dollar, declining to J$100.96 from J$101.70 at the close on Thursday. The selling rate for the British Pound rose to J$174.7 from J$173.57 previously and the euro fell versus the Jamaican dollar to J$152.09 to buy the European common currency, versus the prior selling rate of J$152.63.