The Jamaican dollar closed trading made on the foreign exchange on Tuesday, at J$125.01 to the US dollar, with the selling rate falling by 32 cents, but the US dollar was sold as low as $124.62 by midday.
In US dollar trading, dealers sold US$43.52 million at a rate of J$125.01 at the close, compared to US$51.22 million at a rate of J$125.33 on Monday. Purchases of the US currency by dealers, amounted to US$47.36 million, with the average rate falling 35 cents to $123.95, compared to US$50.66 million at an average rate of $124.30 on Monday.
The market closed with inflows of all currencies, ending at US$53.17 million, versus US$60.68 million on Tuesday and dealers sold US$47.97 million in contrast to US$59.71 million, in previous trading activity.
At mid-day on Tuesday dealers purchased US$13.34 million at an average rate of J$124.45 and sold US$14.45 million at an average of J$124.62.
In comparison at mid-day on Monday, dealers purchased US$28.59 million at an average rate of J$124.70 and sold US$15.95 million at an average of J$125.15.
The selling rate on Tuesday, for the Canadian dollar, declined to J$98.23 from J$98.63 at the close on Monday. The selling rate for the British Pound rose to J$175.41 from J$174.87 previously and the euro increased against the Jamaican dollar to J$156.99 to buy the European common currency, versus the prior selling rate of J$154.26.
Jamaica dollar back to 125 to US$
Jamaican$ made modest gain – Monday
The Jamaican dollar made more gains in foreign exchange trading on Monday against the US dollar, with the selling rate falling by 7 cents and the buying rate rising by 22 cents.
The market closed with inflows of all currencies, ending at US$60.68 million, versus US$49.55 million on Friday and dealers sold US$59.71 million in contrast to US$49.70 million, in previous trading.
In US dollar trading, dealers sold US$51.22 million at a rate of J$125.33 at the close, compared to US$40.11 million at a rate of J$125.40 on Friday. Purchases of the US currency by dealers, amounted to US$50.66 million at an average rate of $124.30, compared to US$37.09 million at an average rate of $124.08 on Friday.
At mid-day on Monday dealers purchased US$28.59 million at an average rate of J$124.70 and sold US$15.95 million at an average of J$125.15. At mid-day on Friday dealers purchased US$13.8 million at an average rate of J$124.61 and sold US$12.75 million at an average of J$125.43.
The selling rate on Monday, for the Canadian dollar, rose to J$98.63 from J$98.33 at the close on Friday. The selling rate for the British Pound fell to J$174.87 from J$176.53 previously and the euroslipped against the Jamaican dollar to J$154.26 to buy the European common currency, versus the prior selling rate of J$155.54.
BFXITT deepening FX market – BOJ Governor
Governor of Jamaica’s central bank, Brian Wynter
After introducing B-Fxitt in July last year, an auction system that offers US dollars for sale to authorized dealers by Bank of Jamaica that helped to smooth out flows in the market. The central bank will for the first time be buying funds from the market this week.
The first such auction will be on Wednesday this week, in which they are offering to buy US$5 million. The following week, the central bank of offering to purchase US$12 million and US$15 million the week following.
For a market that many Jamaicans view suspiciously any change or introduction of something new is often greeted with cynicism and viewed as a political tool to stave off public outcry about devaluation. Jamaicans have seen and felt the full impact of devaluation of the local currency in the driving up of prices and making it difficult for them to meet their needs. Changes that make it appear that the system is being manipulated to make believe things are better than they are, are viewed suspiciously. Devaluation is seen as a tool that favours the moneyed class and against the masses. The truth is that the country has never been adequately informed on the reasons and requirements for keeping the currency relatively stable, even as it is subject to market forces.
The rate of exchange between the Jamaican$ & the US$. The rate has fallen below the 120 moving average again.
Last year, the local dollar lost value in which it required more than 131 Jamaican dollars to buy one US dollar. The B-Fxitt auction system made funds available to the market based on an announcement of amounts to be auctioned over a four weeks’ period. The local dollar started to appreciate some times after the introduction of the new system until the end of the year, even as Bank of Jamaica stopped selling at the end of November. Having reached J$125 to the US dollar by the end of 2017, buying pressure saw it rising to more than $128 in March. After BOJ had two auctions in the month amounting to US$40 million in total, the rate has fallen back to just over J$125 to the US dollar, last week.
“We decide on the amounts to be auctioned based on market intelligence. This is based on information as to supply and demand provided by dealers and their clients. The central bank analyses the data to assess liquidity in the system,” the governor of the Central bank stated in a briefing on Friday explained how they determine the amounts to be auctioned. The governor further stated that the “feedback provided a loop of information for both the BOJ and dealers” in assessing demand and supply.
Jamaica’s Central Bank is offering to buy US$5M in its weekly FX auction during the week.
“The country had better start getting used to the two way movement that we have seen since last year,” Wynter states. For him the, strong fiscal performance and the government’s commitment to maintaining it is critical to maintaining the balance. Added to that is the increased confidence within the wider society about the economy. The two way movement within a short time frame must be causing sleepless time for people holding US dollars as they are unsure what the rate will be from time to time. Wynter is of the view that the changes make by the central bank are already reducing the dollarization in the system. The governor sees more of that taking place going forward as investors look locally to other better paying investments options.
There will be more reduction in the surrender requirements of the central bank. The bank cut 10 percentage points between late last year and this year. Wynter indicates that another reduction is coming in the current quarter and ultimately there will be no more surrender requirements with BOJ using their auction system to buy and sell in the future. The change here makes more funds available in the foreign exchange market.
Going forward, the market will be deeper, provide more choices and greater liquidity Wynter stated.
Jamaican$ almost stable – Friday
The Jamaican dollar made just modest gains in the foreign exchange trading on Friday against the US dollar, with the selling rate falling by 1 cent and the buying rate declining 6 cents.
The market closed with inflows of all currencies, ending at US$49.55 million, versus US$39.41 million on Thursday and dealers sold US$49.70 million in contrast to US$40.18 million, in previous trading.
In US dollar trading, dealers sold US$40.11 million at a rate of J$125.40 at the close, compared to US$36.4 million at a rate of J$125.41 on Thursday. Purchases of the US currency by dealers, amounted to US$37.09 million at an average rate of $124.08, compared to US$35.31 million at an average rate of $124.14 on Thursday.
At mid-day on Friday dealers purchased US$13.8 million at an average rate of J$124.61 and sold US$12.75 million at an average of J$125.43. At mid-day on Thursday dealers purchased US$11.12 million at an average rate of J$124.68 and sold US$10.58 million at an average of J$125.31.
For the shortened week, dealers bought US$192 million in all currencies, down from US$216 million in all currencies bought in the previous week. Dealers sold US$197 million, compared to the selling of US$237.6 million in the prior week. Actual US dollar purchases by dealers amounted to US$164 million down from US$191 million in the prior week and they sold US$172 million compared to US$215 million.
The selling rate on Friday, for the Canadian dollar, rose to J$98.33 from J$98.11 at the close on Thursday. The selling rate for the British Pound increased to J$176.53 from J$176.37 previously and the eurogained against the Jamaican dollar to J$155.54 to buy the European common currency, versus the prior selling rate of J$154.62.
Jamaican$ makes more gains – Thursday
The Jamaican dollar made further gains in the foreign exchange trading on Thursday against the US dollar, with the selling rate falling by 15 cents and the buying rate declining 16 cents.
The market closed with inflows of all currencies, ending at US$39.41 million, versus US$48.18 million on Wednesday and dealers sold US$40.18 million in contrast to US$47.92 million, previously.
In US dollar trading, dealers sold US$36.4 million at a rate of J$125.41 at the close, compared to US$44.87 million at a rate of J$125.56 on Wednesday. Purchases of the US currency by dealers, amounted to US$35.31 million at an average rate of $124.14, compared to US$43.69 million at an average rate of $124.30 on Wednesday.
At mid-day on Thursday dealers purchased US$11.12 million at an average rate of J$124.68 and sold US$10.58 million at an average of J$125.31. At mid-day on Wednesday dealers purchased US$14.8 million at an average rate of J$124.68 and sold US$12.06 million at an average of J$125.35.
The selling rate on Thursday, for the Canadian dollar rose to J$98.11 from J$97.79 at the close on Wednesday, the selling rate for the British Pound increased to J$176.37 from J$176.06 previously and the eurodropped against the Jamaican dollar to J$154.62 to buy the European common currency, versus the prior selling rate of J$156.59.
Gain for Jamaican$ slows- Wednesday
The rate of exchange between the Jamaican$ & the US$. The rate has fallen below the 120 moving average again.
The Jamaican dollar made further gains in the foreign exchange trading on Wednesday but at a slower pace than for the past two trading days. The selling rate fell by just 5 cents on Tuesday but the buying rate rose 15 cents.
The market closed with inflows of all currencies, ending at US$48.18 million, versus US$54.67 million on Tuesday, but dealers sold US$47.92 million in contrast to US$59.04 million, previously.
In US dollar trading, dealers sold US$44.87 million at a rate of J$125.56 at the close, compared to US$50.99 million at a rate of J$125.61 on Tuesday. Purchases of the US currency by dealers, amounted to US$43.69 million at an average rate of $124.30, compared to US$47.67 million at an average of $124.15 on Tuesday.
At mid-day on Wednesday dealers purchased US$14.8 million at an average rate of J$124.68 and sold US$12.06 million at an average of J$125.35. At mid-day on Tuesday dealers purchased US$20.42 million at an average rate of J$124.99 and sold US$20.31 million at an average of J$125.70.
The selling rate on Wednesday, for the Canadian dollar fell to J$97.79 from J$98.02 at the close on Tuesday, the selling rate for the British Pound increased to J$176.06 from J$174.94 previously and the euroslipped against the Jamaican dollar to J$156.59 to buy the European common currency, versus the prior selling rate of J$157.59.
More losses for US$ vs Jamaican$ – Tuesday
The Jamaican dollar made further gains in the foreign exchange trading on Tuesday the selling rate fell 38 cents from $126.99 on Thursday and the buying rate dropped 50 cents.
The market closed with inflows of all currencies, ending at US$54.67 million, versus US$46.04 million on Thursday, but dealers sold US$59.04 million in contrast to US$61.22 million, previously.
In US dollar trading, dealers sold US$50.99 million at a rate of J$125.61 at the close, compared to US$57.26 million at a rate of J$125.99 on Thursday. Purchases of the US currency by dealers, amounted to US$47.67 million at an average of just over $124.15, compared to US$40.66 million at an average of just over $124.65 on Thursday.
At mid-day on Tuesday dealers purchased US$20.42 million at an average rate of J$124.99 and sold US$20.31 million at an average of J$125.70. At mid-day on Thursday dealers purchased US$12.69 million at an average rate of J$125.04 and sold US$12.37 million at an average of J$125.76.
The selling rate on Tuesday, for the Canadian dollar rose to J$98.02 from J$97.20 at the close on Thursday, the selling rate for the British Pound increased to J$174.94 from J$178.11 previously and the euroslipped against the Jamaican dollar to J$157.59 to buy the European common currency, versus the prior selling rate of J$159.18.
US$ sell off pushes rates down – Thursday
Trading in the foreign exchange on Thursday continued with heavy selling off US dollars by dealers and pushing the selling rate for the US dollar below $126.
The market closed with inflows of all currencies, ending at US$46.04 million, versus US$66.33 million on Wednesday, but dealers sold US$61.22 million in contrast to US$60.51 million, previously.
The rate to buy the US dollar fell against the Jamaican dollar by 9 cents while the buying rate by dealer dropped a sizable 54 cents and signaling low buying interest.
In US dollar trading, dealers sold US$57.26 million at a rate of J$125.99 at the close, compared to US$56.68 million at a rate of J$126.08 on Wednesday. Purchases of the US currency by dealers, amounted to US$40.66 million at an average of just over $124.65, compared to US$61.86 million at an average of $125.19 on Wednesday.
For the shortened week, dealers bought US$216 million in all currencies, down from US$231 million in all currencies bought in the previous week including US$20 million auctioned by the central bank. Dealers sold US$237.6 million, compared to the selling of US$229.3 million previously.
Actual US dollar purchases by dealers amounted to US$190.8 million down from US$210 million in the prior week and they sold US$214.92 million compared to US$214.95 million.
At mid-day on Thursday dealers purchased US$12.69 million at an average rate of J$125.04 and sold US$12.37 million at an average of J$125.76. At mid-day on Wednesday dealers purchased US$18.4 million at an average rate of J$125.63 and sold US$16.6 million at an average of J$125.96.
The selling rate on Thursday, for the Canadian dollar slipped to J$97.20 from J$98.20 at the close on Wednesday, the selling rate for the British Pound increased to J$178.11 from J$177.21 previously and the euro rose against the Jamaican dollar to J$159.18 to buy the European common currency, versus the prior selling rate of J$156.64.
Grand US$ sell off continues on Wednesday
Trading in the foreign exchange on Wednesday was heavier than the large volumes going through the market on Monday and Tuesday as dealers continue to sell off excess US dollars.
The market closed with inflows of all currencies, ending at US$66.33 million, versus US$56.40 million on Tuesday. Dealers sold US$60.51 million in contrast to US$61.03 million, previously.
The buying and selling rates continue to fall in US dollar trading. The rate to buy the US dollar fell against the Jamaican dollar by 25 cents while the buying rate by dealer was down by 6 cents.
In US dollar trading, dealers sold US$56.68 million at a rate of J$126.08 at the close, compared to US$50.24 million at a rate of J$126.33 on Tuesday. Purchases of the US currency by dealers, amounted to US$61.86 million at an average of $125.19, compared to US$43.96 million at an average of $125.25 on Tuesday.
At mid-day on Wednesday, dealers purchased US$18.4 million at an average rate of J$125.63 and sold US$16.6 million at an average of J$125.96. At mid-day on Tuesday dealers purchased US$14.77 million at an average rate of J$125.53 and sold US$15.72 million at an average of J$126.18.
The selling rate on Wednesday, for the Canadian dollar slipped to J$98.20 from J$99.02 at the close on Tuesday, the selling rate for the British Pound increased to J$177.21 from J$178.38 previously and the euro fell against the Jamaican dollar to J$156.64 to buy the European common currency, versus the prior selling rate of J$156.73.
Heavy foreign exchange trading – Tuesday
There was heavy trading in the foreign exchange on Tuesday with volumes exceeding the amounts purchased and sold on Monday as dealers continue to sell off excess US dollars.
The market closed with inflows of all currencies, ending at US$56.40 million, versus US$47.24 million on Monday. Dealers sold US$61.03 million in contrast to US$54.79 million, previously.
The buying and selling rates fell in US dollar trading but with smaller movements than on Monday. The rate to buy the US dollar fell against the Jamaican dollar by 12 cents while the buying rate by dealer was down by 11 cents.
In US dollar trading, dealers sold US$50.24 million at a rate of J$126.33 at the close, compared to US$50.75 million at a rate of J$126.45 on Monday. Purchases of the US currency by dealers, amounted to US$43.96 million at an average of $125.25, compared to US$44.27 million at an average of $125.36 on Monday.
At mid-day on Tuesday, dealers purchased US$14.77 million at an average rate of J$125.53 and sold US$15.72 million at an average of J$126.18. At mid-day on Monday dealers purchased US$19.12 million at an average rate of J$125.86 and sold US$27.58 million at an average of J$126.37.
The selling rate on Tuesday, for the Canadian dollar rose to J$99.02 from J$98.33 at the close on Monday, the selling rate for the British Pound increased to J$178.38 from J$176.63 previously and the euro fell against the Jamaican dollar to J$156.73 to buy the European common currency, versus the prior selling rate of J$158.26.