Inflows of all currencies into Jamaica’s forex market jumped on Friday of US$51.07 million from Thursdays’ US$30.75 million, while dealers sold only US$35.61 million versus US$26.40 million.
US currency purchases accounted for US$40.99 million at an average of J$129.78 versus J$129.82 for US$28.22 million on Thursday, while dealers sold US$29.71 million at JS$130.81 compared to J$131 for US$24.62 million previously. For the week Purchases by dealers accounted for US$276 million and selling of US$186 million of all currencies.
The selling rate for the Canadian dollar fell to J$106.43 from J$107.09, at the close on Thursday. The British Pound was less costly, with J$176.75 buying the British currency versus J$177.81 previously and the euro, fell in value against the Jamaican dollar, with it taking J$157.29 to buy the European common currency, versus J$158.92 previously.
Forex inflows jump to US$51m – Friday
Forex demand cools – Thursday
Inflows of all currencies into Jamaica’s forex market fell back to more normal levels on Thursday with US$30.75 million bought by dealers, down from Wednesdays’ sharp jump to US$91.14 million, while dealers sold only US$26.40 million versus US$45.67 million.
US currency purchases accounted for US$28.22 million at an average of J$129.82 versus J$130.80 for US$88.93 million on Wednesday, while dealers sold US$24.62 million at JS$131 compared to J$131.18 for US$44.44 million previously.
The selling rate for the Canadian dollar rose to J$107.09 from J$106.75, at the close on Wednesday while the British Pound was marginally less costly, with J$177.81 buying the British currency versus J$177.82 previously and the euro, gained value against the Jamaican dollar, with it taking J$158.92 to buy the European common currency, versus J$157.62 previously.
Big jump in Forex inflows – Wednesday
On the day Bank of Jamaica auctioned off US$30 million to dealers, inflows of all currencies jumped sharply to a very high US$91.14 million, up from US$56.56 million on Tuesday and dealers sold US$45.67 million versus US$37.94 million.
US currency purchases accounted for US$88.93 million at an average of J$130.80 versus J$130.27 for US$51.92 million on Tuesday, while dealers sold US$44.44 million at JS$131.18 compared to J$131.177 for US$36.32 million previously.
The selling rate for the Canadian dollar dropped to J$106.75 from J$108.04, at the close on Tuesday while the British Pound was more costly, with J$177.82 buying the British currency versus J$175.99 previously and the euro, gained value against the Jamaican dollar, with it taking J$157.62 to buy the European common currency, versus J$157.24 previously.
BOJ forex auction clears at J$131.36
Bank of Jamaica sold US$30 million that it auctioned on Wednesday, September 20, to eligible Authorised Dealers and Cambios, at an average of rate of J$131.36 to one US dollar.
The central bank received 42 bids totaling $62.6 million of which 17 were successful, in its B-FXITT Standard Intervention Tool. The highest bid rate was $131.80 to purchase US$3 million, with the lowest being $121.28 to buy US$1 million.
At the auction, last week Wednesday, a total 45 bids amounting to US$60.9 million chased, the $20 million Bank of Jamaica offered for sale, resulting in an average rate of $131 to buy the US dollar on offer. The auction’s highest bid then was $131.10 to purchase US$2.3 million.
Jamaican$ slips on increased inflows – Tuesday
The rate the public bought the US dollar at, rose on Tuesday to JS$131.18 from J$131.09 on Monday, as dealers sold US$36.32 million compared to US$38.44 million on Monday.
Dealers bought US$51.92 million in US currency, at an average of J$130.27 versus J$129.82 on Monday when they purchased US$43.67 million.
On Tuesday, dealers purchased the equivalent of US$56.56 million in all currencies, up from US$46.95 million and sold US$37.94 million versus US$40.62 million on Monday.
The selling rate for the Canadian dollar rose to J$108.04 from J$106.17, at the close on Monday while the British Pound was more costly, with J$175.99 buying the British currency versus J$173.48 previously and the euro, fell in value against the Jamaican dollar, with it taking J$157.24 to buy the European common currency, versus J$159.32 previously.
Jamaican$ gains ground – Monday
The rate the public paid for the US dollar at, eased on Monday to JS$131.09 down from J$131.31 on Friday, as dealers sold US$38.44 million compared to US$52.68 million on Friday.
Dealers bought US$43.67 million in US currency, at an average of J$129.82 versus J$130.46 on Friday when they purchased US$63.42 million.
On Monday, dealers purchased the equivalent of US$46.95 million up from US$68.16 million and selling US$40.62 million versus US$58.12 million on Friday.
The selling rate for the Canadian dollar rose to J$106.17 from J$105.95, at the close on Friday while the British Pound was less costly, with J$173.48 buying the British currency versus J$174.10 previously and the euro, fell slightly in value against the Jamaican dollar, with it taking J$159.32 to buy the European common currency, versus J$159.58 previously.
Dealers bid up rates at BOJ FX auctions
Bank of Jamaica introduced a new system in providing foreign exchange to the local market by offering a weekly amounts for sale, in the first instance. In the latest offering the average rate climbed to $131 as demand exceeded the amount on offer.
Later on, presumably in the winter months, when inflows are much higher then, the auction will accommodate both buying and selling, with the central bank buying or selling as the circumstance dictates.
AT the auction, last week Wednesday, a total 45 bids amounting to $60.9 million chased, the $20 million Bank of Jamaica offered for sale, resulting in an average rate of $131 to buy the US dollar on offer. The auction highest bid was $131.10 to purchase US$2.3 million. In the previous week’s auction, BOJ offered US$10 million that attracted 43 bids amounting to US$29.1 million, with the highest rate at $130.50 to buy $1 million. Bank of Jamaica on Thursday, August 31, had a special unscheduled offer of $35 million available to the market pulling in 31 bids amounting to US$70.2 million chasing the offer. The next auction will see BOJ auctioning off US$30 million this week Wednesday as announced at the start of the month.
Huge surge in NIR mostly temporary
Jamaica’s international reserves surged to $4.25 billion at the end of August, with net reserves climbing to $3.67 billion, up from a net of US$2.74 billion at the end of July.
The increase came from a number of sources with the inflows from the issue of bonds by the Government of Jamaica (GOJ) as well as inflows from the foreign exchange market.
“The increase in the NIR of US$933 million in August 2017 was attributed mainly to receipts from Eurobond of US$834.4 million by GOJ, net purchases of foreign exchange by BOJ from authorised foreign exchange traders and issuance of BOJ USD CDs,” Bank of Jamaica confirmed in response to an IC Insider.com’s query.
“Notably, the impact of the large inflow from the GOJ Eurobond is transitory. During September, GOJ will pay approximately US$530 million (principal and interest) to investors on prepayment of two USD Bonds,” the BOJ’s response concluded.
Data for the first two weeks in September suggest that there is likely to be no new net inflows for the month from the regular foreign exchange market and the NIR could end at just about US$3.1 billion after the payout of the GOJ bonds, if BOJ does not issue new CDs to mop up the liquidity that would flow from the payout.
Inflows up J$ falls to $131.22 – Thursday
Bank of Jamaica auctioned off US$20 million on Wednesday and the amount seems to have swollen foreign exchange trading volumes on Thursday, with dealers buying the equivalent of US$70.98 million and selling US$70.8 million.
On Wednesday dealers bought US$50.45 million versus US$31.03 million on Wednesday and in US currency they bought US$58.56 million, at an average of J$130.30 versus J$129.68 on Wednesday, when they purchased US$45.41 million. The rate to buy the US dollar by the public, rose to an average of J$131.22, in trading US$59.51 million from J$130.51 for US$27.84 million on Wednesday.
The selling rate for the Canadian dollar rose to J$107.94 from J$107.43, at the close on Wednesday while the British Pound was more costly, with J$172.97 buying the British currency versus J$172.62 previously and the euro, fell in value against the Jamaican dollar, with it taking J$156.51 to buy the European common currency, versus J$157.01 previously.
Net US$ Inflows rise J$ falls again – Wednesday
Dealers in the Jamaican foreign exchange market bought the equivalent of US$19.4 million more foreign exchange on Wednesday than they sold but the rate to buy the US dollar by the public, rose to an average of J$130.51 trading US$27.84 million from J$130.14 for US$21.70 million on Tuesday.
Dealers bought US$45.41 million in US currency at an average of 99 cents more than on Tuesday, at J$129.68 versus J$128.69 when they purchased US$29.18 million.
Trading of all currencies ended with the equivalent of US$50.45 million purchases by dealers on Wednesday versus Tuesday’s levels of US$33.50 million while they sold US$31.03 million compared with US$24.32 million on Tuesday.
The selling rate for the Canadian dollar slipped to J$107.43 from J$107.52 at the close on Tuesday while the British Pound was more costly, with J$172.62 buying the British currency versus J$170.09 previously and the euro, rose in value against the Jamaican dollar, with it taking J$157.01 to buy the European common currency, versus J$156.29 previously.