The Jamaican dollar gained more ground versus the United States dollar on Monday with the selling rate dipped to J$128.89 to US$1 as US dollar inflows reached US$45.15 million and selling accounted for $39.14.
Inflows were just US$1 less than entered the market on Monday June 19. Overall, total foreign exchange of all currencies entering the market totaled US$50.79 million with US$42.2 million sold.
The buying rate for the US dollar fell to JS$128 from $128.15 at the end of trading on Friday.
The selling rate for the Canadian dollar declined to J$97.32 compared to J$97.83 at the close on Friday while the British Pound cost more at the close on Monday with J$163.71 buying the British currency versus J$162.63 on Friday and the Jamaican dollar gained value against the euro it taking J$144.89 to buy the European common currency on Monday versus Friday’s J$145.84.
Jamaican$ gains strenght
The Jamaican dollar regain more lost grounds against the United States dollar on Friday, with the selling rate ending at $129.01, down from $129.15 on Thursday as authorized dealers sold US$26.36 million against purchase of US$38.4 million at an average rate of $128.15.
Dealers bought a total of US$44.89 million in all currencies and sold the equivalent of US$30.6 million. For the week $216.84 was purchased by dealers, up from $209 million, the week before and they sold $182 million, down from $200 million sold in the prior week, resulting in a surplus of $35 million for the week and US$64 million for the month since June 5. In United States dollars trading, dealers purchased US$200 million and sold $164 million during the week, for a net surplus of $36 million, compared to US$180 million bought and US$174 million sold the previous week, a net of just $5 million. For the month since June 5, net inflows of US$55 million came into the system.
Jamaican Dollar rise again
Foreign exchange trading on Thursday saw the equivalent of US$42.7 million entering the market and US$39.6 million being sold, bringing the surplus for the week to date to US$20.2 million.
Traders purchased United States dollar in the amount of $41.1 million and sold $37.2 million resulting in a net intake of US$24 million for the week to date. Trading resulted in another day of appreciation for the local currency with the selling rate of the US dollar being J$129.15 versus J$129.21 on Wednesday. Today’s gain for the local dollar is the 15th trading day for June, that the rate has appreciated.
J$ revaluation on the way
The value of the Jamaican dollar continues to appreciate in June, with the selling rate of the US dollar falling to J$129.21 at the close on Wednesday, down from J$130.14 at the close on the last day of the May.
The rate for the local dollar has appreciated on every day of the month except for a 1 cent rise on the 14th.
Helping with the fall in the value of the US dollar against the local currency is net inflows in each week of June. In the first full week of June, ending on the 9th net inflows into the system were US$21 million equivalent and for the US dollar $14 million, the second week, US$8.5 million and US$5 million respectively and so far of the third week, USS$17 million and US$20 million respectively.
GOJ Treasury bill heading to 4%
Government of Jamaica Treasury bill rates seems headed to 4 percent by early 2018 if current trends on inflation, exchange rate stability and world oil prices hold.
Treasuries hit just over nine percent for the 182 days instrument in 2014. The rates declined thereafter, falling to a low just below six percent in late 2015 and moved sideways to October last year and then rose to six and half percent by December. Rates at the January and February auctions fell.
In contrast to falling rates for the 182 days T-bills, rates on the short-term bills rose at the February auction. The 91 days T-bill closed at 5.92%, up from 5.62% in January while the 30 days ended at 6.08% up from 5.64% in December.
The trend seems clear with inflation falling to 1.7 percent last year and running at 2.6 percent to January compared to same period in 2016 signalling room for much lower rates. The chart of Treasury rate trends, points to a declining trend with the two blue lines indicating the upper and lower band.
During 2016 inflation was negatively affected b a 7 percent decline in the value of the Jamaican dollar against the United States currency, that would have contributed to most of the inflation except the portion relating to increased taxes, imposed last year. Devaluation if any, should be more moderate in 2017, as foreign exchange flows continue to be strong, therefore inflation should moderate with the absence of devaluation of the local dollar.
The trendline suggests rates on T bills falling to 4 percent by late 2017 or early 2018. The chart is also showing that rates could sit at resistance around the 5.7 percent level for awhile but the downward slopping trend lines are pointing to lower rates by the latest August, with softening world oil prices and little or no devaluation of the Jamaican dolllar to spike inflation.
Net FX inflows up US$5.5m – Tuesday
Net inflows into the foreign exchange market in Jamaica delivered another day of strong surplus of US$5.5 million on Tuesday, leading to gains in the value of the Jamaican dollar against the main currencies it usually trades against except for the United States currency.
At the end of trading, dealers bought US$38,392,249 and sold only US$32,810,695 compared to US$40,421,717 purchased and US$30,050,926 sold on Monday, of all currencies.
In US dollar trading, dealers bought US$33,392,630 compared to US$36,514,078 on Monday. The buying rate for the US dollar rose 9 cents to close at $127.35.
A total of US$30,026,760 was sold versus US$27,511,067 on Monday, with the selling rate rising 11 cents to end at $128.07. The Canadian dollar buying rate rose 22 cents to $96.02, with dealers buying C$2,658,342 and selling C$1,994,738 at an average rate that fell 29 cents to $96.94. The average rate for buying the British Pound rose $1.15 to $163.56 for the purchase of £2,171,012 while £826,625 was sold as the rate declined 11 cents to end at $165.02.
At the end of trading, dealers sold €177,149 as the selling rate for the Euro, closed at $143.46 for a fall of $1.99 from Monday’s rate, according to data from Bank of Jamaica. Dealers purchased 
€168,789 of the European common currency at $141.30 after jumping $3.25 from the rate on Monday. The US dollar equivalent of other currencies traded, amounts to US$19,806 being bought and the selling of US$10,499.
Highs & Lows| Notable changes to the highest and lowest traded rates, for the Jamaican dollar in the foreign exchange market on Tuesday, include a fall of 84 cents in the highest buying rate of the British Pound to $167.34 and a rise of $2 in the lowest selling rate to $160. Trading in the Euro resulted in a rise of 89 cents in the highest buying rate to end at $145.89, a fall of $3.35 in the highest selling rate to $146.50 and a jump of $20.97 in the lowest selling rate to $135.50.
Jamaica’s NIR jumps by US$250M
Jamaica’s Net International Reserves (NIR) benefited from buoyant flows during the summer months to shoot up by US$250 million, taking the net reserves US$2.52 billion at the end of August. The reserves shot up by US$124 million in July and jumped by US$126 million in August, as the banking system raked in much more foreign currency over the two months than they sold.
In spite of the net heavy inflows during the period, the local dollar declined marginally by less than two percent against the critically important US dollar, with the selling rate moving from $125.46 at the end of June to $127.57 at the end of August.
The build-up of the NIR took place over the period when bankers net purchasing of foreign currency amounted to just under US$300 million in July and August.
The reserves at the end of August are above the 2016 peak of US$2.42 billion at the end of March, just before the central bank intervened by selling to the market, pulling the reserves to a low of US$2.265 billion in June.
The build in the NIR places the country’s central bank in a good position to control of the foreign exchange market in the months ahead, before the next period of higher inflows starts in mid-December.
Surplus FX jumps Tuesday
Trading in Jamaica’s foreign exchange market picked up sharply on Tuesday with dealers buying US$18.5 million more than they sold, as inflows continue to exceed outflows as was the case for the high summer months.
In Tuesday’s trading, dealers bought US$82,044,075 and sold US$63,505,815 compared to US$23,079,436 purchased and US$19,531,349 sold on Monday, of all currencies.
In US dollar trading, dealers bought US$78,399,363 compared to US$19,609,026 on Monday. The buying rate for the US dollar jumped $1.03 cents to close at $127.29. 
A total of US$61,557,554 was sold versus US$18,292,586 on Monday, with the selling rate rising 1 cent to end at $127.68. The Canadian dollar buying rate rose $1.18 to $95.82, with dealers buying C$1,202,592 and selling C$707,371 at an average rate that fell 38 cents to $97.65. The average rate for buying the British Pound rose $1.24 to $166.45 for the purchase of £2,026,181 while £909,970 was sold with the rate that rose $1.97 to end at $170.35.
At the end of trading, the selling rate for the Euro, rose 19 cents to close at J$142.98 from Monday’s rate, according to data from Bank of Jamaica, dealers purchased the European common currency at J$135.64 for a fall of $5.48 from the rate on Monday. The US dollar equivalent of other currencies traded amounts to US$89,829 being bought, while US$193,203, was sold.
Highs & Lows| Notable changes to the highest and lowest traded rates, for the Jamaican dollar in the foreign exchange market on Tuesday, include a rise of 75 cents in the highest buying rate for the Canadian Dollar to $99.45, a rise in the lowest selling rate of $1.20 to $94.20. Trading in the British Pound resulted in a $1.10 rise in the highest buying rate to $171.50 and a rise of $1.50 in the lowest selling rate to $163.50.
It’s now J$126.05 for the US – Tuesday
The Jamaica dollar closed on Tuesday above 126 level for one US dollar for the first time as forex trading saw more selling by dealers than the amount bought by them.
The foreign exchange market closed on Tuesday with dealers buying the equivalent in all currencies of US$46,789,793 and selling US$53,956,348, in contrast to US$46,887,823 purchased and US$45,219,931 sold on Monday
In US dollar trading, dealers bought US$44,550,096 compared to US$43,963,642 on Monday as the buying rate for the US dollar rose 29 cents to $125.48. A total of US$50,575,123 was sold versus US$43,909,244 on Monday with the selling rate rising 6 cents to $126.05.
The Canadian dollar buying rate climbed $1.19 to end at $95.31 with dealers buying C$863,203 and selling C$2,979,467, at an average rate that rose $2.49 to $99.24. The average rate for buying the British Pound dropped 71 cents to $175.40 for the purchase of £1,091,795, while £295,344 was sold, with the rate falling $1.74 to $177.85.
At the end of trading, the selling rate for Euro, rose 15 cents to close at J$142.38 from Monday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$139.35, for a rise of 16 cents off Monday’s rate.
The US dollar equivalent of other currencies traded amounts to US$57,873 being bought, while US$618,927 was sold.Highs & Lows| Notable changes to the highest and lowest traded rates for the Jamaican dollar in the foreign exchange market on Tuesday, include, a rise in the lowest selling rate of the Canadian Dollar by $7.30 to $92, a fall in the highest buying rate British Pound of $2.55 to $179, a fall in the lowest buying rate by 66 cents to $142.93, a decline in the highest selling rate of 86 cents to $185.98 and a fall of 90 cents in the lowest selling rate to $170.50.
Jamaican$ 1 cent from $126 to US – Monday
The Jamaica dollar closed on Monday just 1 cent below the 126 level for one US dollar as forex trading exceeded US45 million, with selling just lower than the amount bought by dealers.
The foreign exchange market started the week, with dealers buying the equivalent in all currencies of US$46,887,823 and selling US$45,219,931, in contrast to US$36,345,365 purchased and US$34,310,493 sold on Friday
In US dollar trading, dealers bought US$43,963,642 compared to US$30,620,827 on Friday as the buying rate for the US dollar rose 12 cents to $125.19. 
A total of US$43,909,244 was sold versus US$31,425,559 on Friday with the selling rate rising 10 cents to $125.99. The Canadian dollar buying rate dropped $3.23 to end at $94.12 with dealers buying C$998,707 and selling C$543,804, at an average rate that dipped $1.60 to $96.74. The average rate for buying the British Pound dropped $3.45 to $176.11 for the purchase of £1,471,425, while £577,920 was sold, with the rate falling $1.49 to $179.59.
At the end of trading, the selling rate for Euro, fell 20 cents to close at J$142.23 from Friday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$139.18, for a rise of 21 cents off Friday’s rate. The US dollar equivalent of other currencies traded amounts to US$103,378 being bought, while US$69,345 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 in the lowest selling rate of the Canadian Dollar by $8.80 to $84.70, a fall in the highest buying rate British Pound of $1.25 to $181.55, a fall in the lowest buying rate by $1.25 to $143.59, a decline in the highest selling rate of $1.62 to $186.84 and a fall of $1.60 in the lowest selling rate to $171.40.
