The Jamaica dollar lost ground against the United States currency at the close of trading on Friday even as the inflows was US$5 million more than the amount sold.
The foreign exchange market closed on Friday with dealers buying the equivalent in all currencies, of US$38,700,842 and selling US$33,005,652, in contrast to US$46,580,987 purchased and US$45,960,920 sold on Thursday
In US dollar trading, dealers bought US$35,609,042 compared to US$42,886,272 on Thursday as the buying rate for the US dollar rose 5 cents to $125.46. 
A total of US$30,473,037 was sold versus US$43,055,967 on Thursday with the selling rate rising 7 cents to $126.07. The Canadian dollar buying rate rose $1.51 to end at $94.43 with dealers buying C$916,929 and selling C$539,990, at an average rate that fell 78 cents to $97.28. The average rate for buying the British Pound dipped $1.37 to $175.53 for the purchase of £1,626,743, while £614,329 was sold, with the rate declining 51 cents to $177.63.
At the end of trading, the selling rate for Euro, dropped $1.20 to close at J$140.45 from Thursday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$137.69, for a fall of $1.23 on Thursday’s rate. The US dollar equivalent of other 
currencies traded amounts to US$125,608 being bought, while US$1,250,415 was sold.
Highs & Lows| Notable changes to the highest and lowest traded rates for the Jamaican dollar in the foreign exchange market on Friday, include, a decline of $1.12 in the lowest buying rate of the Canadian Dollar to $76.07, a fall of 92 cents in the highest selling rate to $100.08 and the lowest buying rate of the British Pound dropped $1.66 to $140.69 with the highest selling rate falling $1.84 to $183.38.
Jamaican$ down vs US on Friday
Jamaican$ gains vs US on Thursday
The Jamaica dollar made gains on the United States currency at the close of trading on Thursday, with the selling rate closing at the 126 level for one US dollar.
The foreign exchange market closed on Thursday with dealers buying the equivalent in all currencies of US$46,580,987 and selling US$45,960,920, in contrast to US$44,233,911 purchased and US$43,941,471 sold on Wednesday
In US dollar trading, dealers bought US$42,886,272 compared to US$41,821,237 on Wednesday as the buying rate for the US dollar fell 12 cents to $125.41. A total of US$43,055,967 was sold versus US$42,635,195 on Wednesday with the selling rate declining 8 cents to $126.
The Canadian dollar buying rate fell $1.61 to end at $92.92 with dealers buying C$525,509 and selling C$950,143, at an average rate that rose 9 cents to $98.06. The average rate for buying the British Pound climbed $2 to $176.90 for the purchase of £2,210,356, while £1,396,914 was sold, with the rate rising $1.23 to $178.14.
At the end of trading, the selling rate for Euro, rose 34 cents to close at J$141.65 from Wednesday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$138.92, for a rise of 36 cents on Wednesday’s rate. The US dollar equivalent of other currencies traded amounts to US$187,489 being bought, while US$190,557 was sold.
Highs & Lows| Notable changes to the highest and lowest traded rates for the Jamaican dollar in the foreign exchange market on Thursday, include, a rise of 90 cents in the highest buying rate of the Canadian Dollar to $98.90, a gain of $4.19 in the lowest buying rate to $77.19, while the lowest selling rate fell $1.50 to $91.50 and the lowest buying rate of the British Pound dropped $5.99 to $142.35 with the lowest selling rate falling $1.84 to $169.
Jamaican$ sinks further – Wednesday
The Jamaica dollar closed on Wednesday above 126 level for one US dollar for the second day as forex trading saw slightly more selling by dealers of the United States currency than the amount bought by them.
The foreign exchange market closed on Wednesday with dealers buying the equivalent in all currencies of US$44,233,911 and selling US$43,941,471, in contrast to US$46,789,793 purchased and US$53,956,348 sold on Tuesday
In US dollar trading, dealers bought US$41,821,237 compared to US$44,550,096 on Tuesday as the buying rate for the US dollar rose 5 cents to $125.53. A total of US$42,635,195 was sold versus US$50,575,123 on Tuesday with the selling rate rising 3 cents to $126.08.
The Canadian dollar buying rate fell 78 cents to end at $94.53 with dealers buying C$737,247 and selling C$473,124, at an average rate that dropped $1.27 to $97.97. The average rate for buying the British Pound dropped 50 cents to $174.90 for the purchase of £1,032,688, while £559,630 was sold, with the rate falling 94 cents to $176.91.
At the end of trading, the selling rate for Euro, dropped $1.07 to close at J$141.31 from Tuesday’s rate, according to data from Bank of Jamaica, while dealers purchased the European 
common currency at J$138.55, for a fall of 79 cents off Tuesday’s rate. The US dollar equivalent of other currencies traded amounts to US$418,654 being bought, while US$153,342 was sold.
Highs & Lows| Notable changes to the highest and lowest traded rates for the Jamaican dollar in the foreign exchange market on Wednesday, include, a fall in the highest buying rate of the Canadian Dollar by $1.25 to $98, a fall of $5.02 in the lowest buying rate to $73, while the lowest selling rate rose $1 to $93 and the lowest buying rate of the British Pound gained $5.41 to $148.34.
Bank customers face $5,000 charge?
Jamaica’s commercial bank customers could face a $5,000 charge for each transaction made through banks above the threshold of $1 million by way of cheques commencing May 2, this year. The central bank – Bank of Jamaica announced a lowering of the amount that can be allowed through the Automatic Clearing House (ACH) to $1 million without a charge and amounts of cheques over that level will incur the $5,000 charge. Banks will pass the charge onto their customers.
According to the release from the central bank, “banks will be required to target 100% of all payments and transfers that are above the $1 million threshold for migration to JamClear®-RTGS.
The following will become applicable with regard to compliance with the stated target: Commercial banks that are fully compliant with the targeted threshold of J$1 million for those payments and transfers that are processed through the ACH will incur no charge. Commercial banks that are not compliant with the targeted threshold of J$1 million for those payments and transfers that are processed through the ACH will incur a charge.
Bank of Jamaica disclosed that “the decision was informed by extensive discussions and is fully supported by the National Payments Council of Jamaica. The new threshold marks the culmination of the phased programme to significantly reduce, if not eliminate, settlement risk to the safety and security of the national payment system which is posed by large value transactions that are processed through the ACH for settlement on a deferred net settlement basis.”
NIR climbs US$94m in December
Jamaica enjoyed a week of strong net inflows on the FX front
The inflows brought the net inflows to US$93.9 million for the month, moving the reserves to $2.437 billion from $2.34 at the end of November.
Reserves now amount to 33.37 in Weeks of Goods Imports, up from 31.80 weeks and 22.98 weeks in reserves of Goods & Services Imports up from 21.90 weeks from the November amounts a release from Bank of Jamaica disclosed.
Bank of Jamaica confirmed that for the December 2015 quarter the net purchase by them amounted to US$137.48 million. The intake by the bank helped to build up the reserves.
Major gains in Jamaica’s current account
Petroleum imports help cut trade deficit to June
For the March 2015 quarter, the Current Account enjoyed a surplus of US$39.4 million, an improvement of US$149.5 million over the similar period in 2014 as a result the current account for the year to June is negative US$45 million versus a deficit of US$398 million in the first half year in 2014.
The outturn for the June quarter reflected improvements on all sub-accounts except the Income sub-account which was almost unchanged. Net private and official capital inflows were, however, insufficient to finance the deficits on the current and capital accounts. As a result, there was a drawdown of US$177 million in the Net International Reserves of the Bank of Jamaica (BOJ).
There was a reduction of US$80 million in the deficit on the merchandise trade largely associated with a decline of US$133 million in imports and a reduction of US$53 million in exports. “The reduction in payments for imports mainly reflected lower expenditure for fuel and raw materials. Consumer and capital goods imports rose. The decline in exports mainly reflected lower earnings from non-traditional exports and sugar. Notwithstanding the overall fall in exports, there were higher earnings from alumina exports for the quarter” the BOJ report states.
Hilton Rose Hall -Sagicor X Fund recent acquisition
Jamaica economy crawls slowly
Real GDP is assessed to have expanded within the range of 0.5 percent to 1.5 percent for the June 2015 quarter by Bank of Jamaica, Governor of the bank, Bryan Wynter, said today.
The bank said the estimated outturn for the review quarter, “mainly reflects continued expansion in Mining & Quarrying, Hotels & Restaurants, Transport, Storage & Communication, Construction and Wholesale & Retail Trade”. There were estimated declines in Agriculture, Forestry & Fishing reflecting the impact of the intensification of dry conditions which started in the March 2015 quarter.
Given the anticipated impact of drought conditions, for FY2015/16 real GDP is forecasted to expand within the range of 1.0 per cent to 2.0 per cent. This projection is contingent on recovery in the mining and manufacturing sectors, assuming there is no recurrence of the production disruptions which occurred in the previous fiscal year. In addition, the economy is projected to continue to benefit from improvements in the business environment, consumer and business confidence as well as continued gains in external competitiveness.
New units being built at Montego Freeport in Montego Bay this year.
Treasury bill rates continue slide
Interest rates fell in the latest issues of Treasury bill that were on offer on Wednesday continuing a slow decent since the start of 2015 but a much steeper decline form March last year. The two offerings for $400m each, attracted bids for over $940 million each with a total of 1.93 billion.
The 91 days instrument cleared at an average of 6.352 percent down from July’s average of 6.44 percent with bids between 5.93 percent to 6.4304 percent were fully accepted while the 182 days yielded an average 6.49 percent a decline from July’s average of 6.60 percent with bids between 6.2 to 6.55 percent being fully allotted.
The declines come against the back ground of Bank of Jamaica (BOJ) 0.25 percent cut in its 30 days CD rates effective on Tuesday. There is no indication in the Treasury bill average rate that the BOJ move had any noticeable impact, although the rate of decline this time around is steeper than the previous three.
Bank of Jamaica cuts interest rate
The interest rate offered by Bank of Jamaica on its benchmark 30-day Certificate of Deposit will be reduced to 5.25 per cent from 5.50 per cent effective 18 August, Bank of Jamaica announced on Monday.
According to the central bank, “macroeconomic vulnerabilities continue to be reduced in the context of the strong implementation of reforms under the Economic Reform Programme. Annual inflation is expected to be within the 5.5 per cent to 7.5 per cent target range by the end of the fiscal year and is projected to decline in the medium term. This assessment is supported by continuation of low international oil prices, a post-drought recovery in agriculture output and continued reduction in inflation expectations. In addition, the current account of the balance of payments is improving, net international reserves are rising, the Government’s debt ratios have improved markedly, and the Government has demonstrated commitment to a strong fiscal stance”. The rates applicable to the Bank’s lending facilities that are linked to this policy rate will correspondingly fall by 25 basis points.
Poor Carib capital market regulation
The glaring case of the abuse of power exercised by the Trinidad Cement board in the handling of the company’s right issue earlier this year, stands out as a clear case for regulatory action to protect investors. In this matter the company failed to properly inform shareholders of a strong improvement in the profit of the a for the first quarter and made it worse with Price Waterhouse Coopers signing a report that gave the impression that there was no profit for the quarter.
In Jamaica, we have a Financial Services Commission (FSC) that is said to be the regulator for the financial entities not regulated by Bank of Jamaica, much is lacking from them, their inaction in matters of critical import makes one wonder what taxpayers money given to them is really being used for?
When it comes to the FSC, one is reminded of a police station located across from a house of crime but does nothing, unless the neighbours complain about it. Here is a case be it small. One of the FSC regulated entities is late with its 2015 results, the company issued a statement to the stock exchange to say they would be late in releasing the audited statements and the audited figures would be released on December 4. They also had the lateness of the audited accounts in 2014, with December 5th being the promised date. Now the public is being told that Barita Investments Limited (BIL) the entity involved has advised that the Audited Financial Statements for the financial year-end 2014/2015 will be submitted to the Jamaica Stock Exchange (JSE)on or before December 29, 2015. That is a major shift in the time frame. No reason was given in the notice on the stock exchange site. The investing public has a right to know the reason for the lateness. The FSC that regulates the market, should be interested in knowing what the reasons are as well, but there is not even a peep out of them?
IC Insider spoke with Mrs Rita Humphries, Chairman of the company on Wednesday December 9, about the issues affecting the release and subsequently, the last posting was made on the JSE website. According to the Chairman, there were issues relating to reconciliation of a few accounts which required adjusting entries to be made. Barita had them reconciled and the auditors needed to go through the information and transactions to satisfy themselves that the end result is correct. Additionally, the auditors advised of none receipt of confirmation from clients some of which had already been sent on to the auditors we are advised. Last year the audit was held up by a difference of opinion between the auditors and the Barita over the issue of fully providing for the value of shares Barita held in Scotia Group on the basis the auditors said was the impairment of the investment. This was after they fully provided for the value of Barita’s investment in National Commercial Bank shares.
All this bring one back to the glaring errors in the audited accounts for Knutsford Express audited accounts for 2014 and 2015 for which there have been no request for revision of the reports, why? Are these regulators really serious in protecting investors? Take the most recent case of tTech. The prospectus for the company’s shares, made no mention of subscribers being asked to pay the JCSD fees. One day before the issue opens, a note is placed on the JSE website that the fee is to be paid by subscribers, even as the prospectus states that investors would not be paying any more than the $2.50, the shares were offered to the general public at. The JSE clearly did not intervene to prevent a chaotic situation from happening with some applicant including the fee and others did not as they were unaware of it. Thankfully, the management and brokers were sensitive to the issue and agreed to refund those who paid.
The FSC and the Stock Exchange police the system when companies are going to the public to raise money, but what happens after, very little? Goodyear was delisted from the JSE, shareholders got two payments form liquidation of the assets but about three years after, no information but there are no regulators dealing with the issue anymore, leaving many small investors to fend for themselves. That is not good enough.