Trading in the Jamaican foreign exchange market resulted inflows for week being the highest for any other week in July. Inflows ended at US241 million some $21 million more than for the second week. Outflows of US$183 million were just US$1 million more than for the previous week.
With one day of the month to go the net inflows of all currencies for July is now at $178 million. For the week net US dollar inflows amounted to $56.6 million and $163.4 million for the month.
Inflows into the Jamaican foreign exchange market rose slightly on Friday to US$44.4 million from US$44.2 million on Thursday with outflows of US$30.4 million down from $35 million on Thursday.
In USA dollar trading, inflows into the system ended at US$37.9 million on Friday versus US$35.80 million on Thursday, with outflows of US$25.5 million compared to US$27.1 million.
The value of the Jamaican dollar declined modestly in value against the US dollar on Friday, with the selling rate for the US dollar ending at J$128.39 from J$128.28 previously. 
Dealers bought the US currency at an average of J$127.26 the same as on Thursday.
The selling rate for the Canadian dollar declined to J$103.34 from J$103.77 at the close on Thursday, while the British Pound was more costly at the close, with J$166.90 buying the British currency versus J$166.22 and the euro, rose in value against the Jamaican dollar, with it taking J$150.66 to buy the European common currency on, versus J$149.30 previously.
Moderate loss in value for J$ – Thursday
The value of the Jamaican dollar declined modestly in value against the US dollar on Thursday, with the selling rate for the US dollar ending at J$128.28 from J$128.22 previously. Dealers bought the US currency at an average of J$127.26 down from JS$127.47 on Wednesday.
Inflows into the Jamaican foreign exchange market rose slightly on Thursday to US$44.2 million from US$43.8 million on Wednesday with outflows of US$35 million up from $28.4 million on Wednesday.
In USA dollar trading, inflows into the system ended at US$35.80 million on Thursday versus US$41.4 million on Wednesday, with outflows of US$27.13 million compared to US$27.1 million.
The selling rate for the Canadian dollar rose to J$103.77 from J$102.58 at the close on Wednesday, while the British Pound was less costly at the close, with J$166.22 buying the British currency versus J$167.32 and the euro, fell in value against the Jamaican dollar, with it taking J$149.30 to buy the European common currency on, versus J$149.73 previously.
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BOJ forex auction clears at $128.26
Jamaica’s Central Bank head quarters Downtown Kingston
The exchange rate for the purchase on US$10 million on sale by Bank of Jamaica in its first official forex auction of US dollars, held on Wednesday, ended with an average of JS$128.26. The highest rate of a successful bid was J$128.30.
The rate contrast with the first auction done as a trial run, that was executed at an average rate of $128.76. Interestingly, the average selling rate that the US dollar was sold at on Wednesday in the interdealer forex market ended at an average of $128.2173 with the highest selling rate going at $147.60.
A total of 41 bids were received amounting to US$26.18 million and a total of 13 bids were accepted by the central bank. Bids are restricted to a maximum of 20 percent per institution for the amount offered with the minimum US$100,000. The highest accepted rate was $128.50 to purchase US$1,600,000. The lowest bid received was $128.30 that was partially allocated while the lowest bid fully allocated was $128.35 that purchased US$5,050,000.
Bank of Jamaica will make US$10 million dollars available to authorized dealers and eligible cambios by competitive bidding process each Wednesday, from Wednesday July 26 through Wednesday August 16, a total of US$40 million for the first four‐week period. The Bank will publish a report from each B‐BXITT operation on the same day, including the weighted average exchange rate arising from the operation.
The next forex intervention auction sale for US dollars is scheduled for Wednesday August 2, with settlement on Thursday August 3.
J$ rose in value modestly – Wednesday
The value of the Jamaican dollar gained modestly in value against the US dollar on Wednesday with the selling rate for the US dollar ending at J$128.22 from J$128.29 previously. Dealers bought the US currency at an average of J$127.47 up from JS$127.14 on Tuesday.
Inflows into the Jamaican foreign exchange market dipped on Wednesday to US$43.8 million from US$46.3 million on Tuesday with outflows of US$28.4 million up from $47 million on Tuesday.
In USA dollar trading, inflows into the system ended at US$41.4 million on Wednesday versus US$38.3 million on Tuesday, with outflows of US$27.1 million compared to US$36.7 million.
The selling rate for the Canadian dollar declined to J$102.58 from J$104.94 at the close on Tuesday, while the British Pound was more costly at the close, with J$167.32 buying the British currency versus J$167.20 and the euro, fell in value against the Jamaican dollar, with it taking J$149.73 to buy the European common currency on, versus J$150.25 previously.
J$ lost value on Tuesday
The value of the Jamaican dollar lost value against the US dollar with the selling rate for the US dollar ending at J$128.29 from J$128.22 previously. Dealers bought the US currency at an average of J$127.14 down from JS$127.46 on Monday.
Inflows into the Jamaican foreign exchange market fell back to more normal levels on Tuesday to US$46.3 million from US$61.79 million on Monday with outflows of US$47 million up from $41.8 million on Monday.
In USA dollar trading, inflows into the system ended at US$38.3 million on Tuesday versus US$56.4 million on Monday, with outflows of US$36.7 million compared to US$36.6 million on Monday.
The selling rate for the Canadian dollar rose to J$104.94 from J$103.12 at the close on Monday, while the British Pound was less costly at the close, with J$167.20 buying the British currency versus J$165.90 and the euro, rose in value against the Jamaican dollar, with it taking J$150.25 to buy the European common currency on, versus J$148.21 previously.
FX Inflows at highest level for July
Inflows into the Jamaican foreign exchange market jumped to the highest level in July to US$61.79 million on Monday with outflows of $41.8 million and helped in bringing the month’s surplus of all currencies traded to US$140 million.
On Friday, inflows were $47.4 million and outflows of $43 million, In USA dollar trading, inflows into the system ended at US$56.4 million on Monday versus US$38 million on Friday, with outflows of US$36.6 million compared to US$34.2 million on Friday.
The value of the Jamaican dollar gained value against the US dollar with the selling rate for the US dollar ending at J$128.22 from J$128.44 previously. Dealers bought the US currency at an average of J$127.46 down from JS$127.41 on Friday.
The selling rate for the Canadian dollar fell back to J$103.12 from J$104.38 at the close on Friday, while the British Pound was less costly at the close, with J$165.90 buying the British currency versus J$166.67 and the euro, lost value against the Jamaican dollar, with it taking J$148.21 to buy the European common currency on, versus J$150.36 previously.
Bank of Jamaica will make US$10 million dollars available to authorized dealers and eligible cambios by competitive bidding process each Wednesday, from Wednesday July 26 through Wednesday August 16, a total of US$40 million for the first four‐week period. The Bank will publish a report from each B‐BXITT operation on the same day, including the weighted average exchange rate arising from the operation.
FX Inflows fall in past week
Inflows into the Jamaican foreign exchange market at US$47.4 million on Friday was the highest for the week and so were outflows of $43.2 million but they helped in bringing the month’s surplus of all currencies traded to US$120 million, so far.
For the week to Friday, trading levels were almost the same as for the first week in July but quite different from the previous week with total inflows of US$213 million, US$7 million less than the week before and outflows of US$182 million, US$17 million higher with net inflows of all currencies ending with US$30.6 million surplus. In USA dollar trading, inflows into the system ended at US$38 million on Friday versus US$33 million on Thursday, while inflows for the week was US$177 down from US$195 million, with outflows at US$4 million more than the previous week, to end at US$150 million.
The value of the Jamaican dollar fell modestly against the US dollar on Friday with the selling rate for the US dollar ending at J$128.44 from J$128.33 previously. 
Dealers bought the US currency at an average of J$127.41 down from JS$127.21 on Thursday.
The selling rate for the Canadian dollar rose to J$104.38 from J$103.14 at the close on Thursday, while the British Pound was less costly at the close, with J$166.67 buying the British currency versus J$167.83 and the euro, rose against the Jamaican dollar, with it taking J$150.36 to buy the European common currency on, versus J$149.06 previously.
Jamaican$ value inch higher
The value of the Jamaican dollar gained modestly against the US dollar on Thursday with the selling rate for the US dollar ending at J$128.33 from J$128.35 previously. Dealers bought the US currency at an average of J$127.21 down from JS$127.27 on Wednesday.
Inflows into the Jamaican foreign exchange market increased slightly by US$2.5 million on Thursday compared to the same day last week, but selling by dealers rose US$8 million compared to last week. For the week to Thursday the inflows are running well behind last week’s inflows for the same period while outflows are in line.
On Wednesday, dealers purchased US$39.6 million compared to US$34.3 million bought and sold US$37.9 million, of all currencies compared to US$33.5 million sold on previously. In USA dollar trading, inflows into the system ended at US$33 million versus US$29.2 million on Wednesday, while selling amounted to US$29.6 million versus US$30.2 million on the prior trading day.
The selling rate for the Canadian dollar rose to J$103.14 from J$102.01 at the close on Wednesday, while the British Pound was more costly at the close, with J$167.83 buying the British currency versus J$166.99 on Wednesday and the euro, rose against the Jamaican dollar, with it taking J$149.06 to buy the European common currency on, versus J$147.16 previously.
Limits on FX holdings for Jamaican banks
Jamaica’s foreign exchange market functions for years since the early 1990s, with individuals dealers setting rates they buy and sell foreign exchange for, with limited controls set by the central bank. While the market allocated resources fairly well, it has never been the most perfect system.
Most earners of foreign currencies could for a years, hold what they earned. Cambios, however were restricted in the length of time they could hold long positions in the purchase of foreign exchange from the public. There were no such restrictions for banks. That is about to change with Bank of Jamaica putting an upper limit as to how much they can hold at any time for their own account.
The change is a part of the reform of the foreign exchange market, meant to curtail banks from excessive speculation in the market.
IC Insider.com sought a response form Bank of Jamaica and they replied as follows: “In response to your query, Bank of Jamaica will shortly introduce to banks, a limit of 20% of regulatory capital with a maximum cap of J$8 billion, not as an absolute limit on FX holdings, but specific to long and short open position in FX”.
IC Insider.com sources who are familiar with the proposal, advise that a number of banks have longer position than the new regulations stipulates, but they have three months to unwind the excess. The J$8 billion limit is approximately US$62 million. The measure is expected to lead to a more orderly foreign exchange market, especially at times when supplies are likely to be lower than normal.
Jamaican$ heading to $127 band
The value of the Jamaican dollar continues to climb against the US dollar as it heads towards the JS$127 band, with the selling rate for the US dollar falling to J$128.16 from J$128.22 previously. Dealers bought the US currency at an average of J$127.48, up from JS$127.28 on Monday.
Inflows into the Jamaican foreign exchange market declined on Tuesday compared to the same day last week, but selling by dealers dropped compared to last week, resulting in no change to the net inflows compared to last week.
Dealers purchased US$45.6 million compared to US$46.2 million bought on Monday and sold US$37.4 million, of all currencies compared to US$30.4 million sold on previously. In USA dollar trading, inflows into the system ended at US$38 million versus US$39 million on Monday, while selling amounted to US$30.4 million versus US$25.8 million on the prior trading day.
The selling rate for the Canadian dollar rose to J$101.92 from J$101.55 at the close on Monday, while the British Pound was more costly at the close, with J$166.93 buying the British currency versus J$166.89 on Monday and the euro, lost value against the Jamaican dollar, with it taking J$146.46 to buy the European common currency on, versus Monday’s J$148.91.