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.
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$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.
Weekly net FX inflows up US$56m
Net inflows into foreign exchange for the week ended September 23, at US$56 million, that did not stop the Jamaican dollar from slipping during the week with all trading days enjoying net inflows. Trading on Friday was low with sale of US$19 million and purchased of US$28 million.
At the end of trading, dealers bought US$28,147,514 and sold only US$18,727,447 compared to US$62,853,963 purchased and US$45,692,310 sold on Thursday, of all currencies.
In US dollar trading, dealers bought US$23,819,249 compared to US$60,798,447 on Thursday. The buying rate for the US dollar dropped 46 cents to close at $127.25. A total of US$15,477,475 
was sold versus US$44,844,532 on Thursday, with the selling rate falling 2 cents to end at $127.99. The Canadian dollar buying rate rose $1.56 to $96.52, with dealers buying C$2,265,065 and selling C$2,007,348 at an average rate that rose $1.64 to $96.64. The average rate for buying the British Pound climbed $1.33 to $164.28 for the purchase of £1,573,645 while only £702,124 was sold as the rate rose $1.66 to end at $166.28.
At the end of trading, dealers sold €695,295 as the selling rate for the Euro, jumped $2.50 from Thursday’s rate to close at J$144.97, according to data from Bank of Jamaica, dealers purchased €498,400 of the European common currency at J$142.99 for a climb of $5.37 from the rate on Thursday. The US dollar equivalent of other currencies traded, amounts to US$18,451 being bought, while US$18,999, 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 drop of $15.10 in the lowest selling rate of the US 
dollar to end at $123.50. There was a rise of 99 cents in the highest buying rate for the Canadian Dollar to end at $99.49 and a jump of $1.08 in the lowest buying rate to $78.44, while the highest selling rate rose $1.40 to 102.05. Trading in the British Pound resulted in a rise of 83 cents in the lowest buying rate to close at $134.88, a climb of $1.30 in the highest selling rate to $173.34 while the lowest selling rate rose $1 to $159.70. Trading in the Euro resulted in a rise of $1 in the lowest buying rate to close at $115.54, a climb of $1.30 in the highest selling rate to $150.34 while the lowest selling rate rose $1 to $139.
Net FX inflows up US$6m – Friday
Trading in Jamaica’s foreign exchange market saw net inflows climbing by US$6 million of all foreign currencies traded, as dealers continue to add to the net pool of funds accumulated in the system since the start of July.
At the end of trading, dealers bought US$31,203,336 and sold only US$25,137,492 compared to US$25,483,427 purchased and US$19,195,850 sold on Thursday, of all currencies.
In US dollar trading, dealers bought US$28,342,390 compared to US$22,657,177 on Thursday. The buying rate for the US dollar rose 7 cents to close at $127.07. A total of US$21,573,835 was sold versus US$17,269,462 on Thursday, with the selling rate rising 13 cents to end at $127.90.
The Canadian dollar buying rate rose 7 cents to $93.77, with dealers buying C$843,824 and selling C$2,975,093 at an average rate that rose $1.07 to $99.04. The average rate for buying the British Pound dropped 82 cents to $164.81 for the purchase of £1,388,744 while only £490,711 was sold as the rate rose 64 cents to end at $166.66.
At the end of trading, the selling rate for the Euro, rose $2.35 to close at J$145.10 from Thursday’s rate, according to data from Bank of Jamaica, dealers purchased the European common currency at J$141.23 for a gain of $2.27 from the rate on Thursday. The US dollar equivalent of other currencies traded, amounts to US$437,137 being bought, while US$612,876, 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 drop of $12 in the lowest buying rate of the US dollar to end at $92. There was a rise of $1.42 in the highest buying rate for the Canadian Dollar to end at $97.60 and a jump of $13.10 in the lowest selling rate to $92.20. Trading in the British Pound resulted in a fall of $1.45 in the highest buying rate to close at $167.55, a climb of $2.50 in the lowest selling rate to $162.
Net FX inflows up US$6.3m – Thursday
Trading in Jamaica’s foreign exchange market saw net inflows climbing by US$6.3 million of all foreign currencies traded as dealers continue to add to the net pool of funds accumulated in the system since the start of July.
At the end of trading, dealers bought US$25,483,427 and sold only US$19,195,850 compared to US$35,551,732 purchased and US$26,969,039 sold on Wednesday, of all currencies.
In US dollar trading, dealers bought US$22,657,177 compared to US$32,192,191 on Wednesday. The buying rate for the US dollar lost 3 cents to close at $127. A total of US$17,269,462 was sold versus US$24,604,567 on Wednesday, the selling rate rose 5 cents to end at $127.77.
The Canadian dollar buying rate fell $2.51 to $93.70, with dealers buying only C$745,881 and selling C$1,241,166 at an average rate that rose 73 cents to $97.97. The average rate for buying the British Pound jumped $1.04 to $165.63 for the purchase of £1,497,758 while only £632,131 was sold as the rate dropped $3.11 to end at $166.14.
At the end of trading, the selling rate for the Euro, fell $1.64 to close at J$142.81 from Wednesday’s rate, according to data from Bank of Jamaica, dealers purchased the European common currency at J$138.96 for a gain of $1.94 from the rate on Wednesday. The US dollar equivalent of other currencies traded, amounts to US$322,513 being bought, while US$143,398, 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 jump of $20.50 in the lowest selling rate of the US dollar to end at $124.50. There was a fall of $1.37 in the highest buying rate for the Canadian Dollar to end at $96.18 and a dive of $13.90 in the lowest selling rate to $79.10. Trading in the British Pound resulted in a rise of $1 in the highest buying rate to close at $169, a climb of $1.80 in the highest selling rate to $177.12 and a decline of $3.50 in the lowest selling rate to $169.50.
Net FX inflows up US$8.6m – Wednesday
Trading in Jamaica’s foreign exchange market saw net inflows climbing by US$8.6 million of all foreign currencies traded as dealers continue to add to the net pool of funds accumulated in the system since the start of July. The central bank is issuing 3 to 7 years US dollar bonds, to mop up excess US dollar, at rates ranging from 2.65 percent to 4.2 percent.
In Wednesday’s trading, the local dollar only lost value versus the US dollar buying rate but enjoyed gains around against the other rates. At the end of trading, dealers bought US$35,551,732 and sold only US$26,969,039 compared to US$26,841,312 purchased and US$24,854,416 sold on Tuesday, of all currencies.
In US dollar trading, dealers bought US$32,192,191 compared to US$23,201,767 on Tuesday. The buying rate for the US dollar rose 17 cents to close at $127.03.
A total of US$24,604,567 was sold versus US$21,450,365 on Tuesday, with the selling rate easing 1 cent to end at $127.72. The Canadian dollar buying rate fell 59 cents to $96.21, with dealers buying C$2,544,063 and selling C$2,364,789 at an average rate that fell 52 cents to $97.24. The average rate for buying the British Pound declined $1.30 to $164.59 for the purchase of £972,514 while only £295,488 was sold as the rate dropped $3.11 to end at $166.14.
At the end of trading, the selling rate for the Euro, rose $1.30 to close at J$144.45 from Tuesday’s rate, according to data from Bank of Jamaica, dealers purchased the European common currency at J$137.02 for a gain of 66 cents from the rate on Tuesday. The US dollar equivalent of other currencies traded, amounts to US$172,652 being bought, while US$179,631, 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 decline of $3.49 in the highest selling rate of the US dollar to end at $134.51 and a drop of $19.60 to $104 in the lowest selling rate. There was a fall of $1.45 in the highest buying rate for the Canadian Dollar to end at $97.55. Trading in the British Pound resulted in a fall of $1.10 in the highest buying rate to close at $168, a decline of $2.02 in the highest selling rate to $175.32 and a rise of $1 in the lowest selling rate to $163.
