The Jamaican dollar hit a low of $151.27 against the US dollar in August and has rebounded since to trade at $145.3 on Wednesday with one technical indicator showing that it could appreciate further.
The local currency has been on an upward rise since December 2018 as it meanders slowly upwards to hit the low point in August. At the low, traders pushed it beyond the channel top, after moving within the channel as depicted by the yellow lines. It could return to the support line at around $138 later in the year but it could face resistance at the $144 region that it is within reach of currently.
In Wednesday’s trading, dealers sold $64.8 million at $145.306 having bought US$55.8 million at an average rate of $144.43. In trading, Scotia Bank bought US$8.5 million more than they sold. First Global, JMMB Bank, National Commercial Bank and Victoria Mutual Building Society sold far more US dollars than the bought.
Jamaican dollar makes more gains
NCB had the highest net sale of US$ on Friday
The rate of exchange for the United States and Jamaican dollar inched further in favour of the local currency on Friday as dealers sold US$42.2 million at an average rate of $127.99 on Friday, down from an average of 128.126 with the sale of $67 million on Thursday.
On Friday, dealers bought US$37.38 million at an average of $126.74, a decline from $127.38 with the buying of US$61 million on Thursday.
Dealers bought $45,56 million in all currencies on Friday and sold US$50.28 million compared to purchases of US$77.6 million and sale of US$82.5 million on Thursday. Thursday’s trading includes the buying of Can$19.7 million and sale of Can$19.4 million.
Major net sellers of US dollars on Thursday are, Citibank with the purchase of US$160,000 and sale of US$1.65 million, First Global Bank buying US$271,000 and selling US$1.96 million. JMMB Bank ended with the buying of US$839,000 and selling $3.6 million, JN Bank purchased $868,000 and sold $2.48 million, Victoria Mutual Building Society bought $720,000 and sold of $2.45 million but First Caribbean purchased $5.6 million and sold just $1.38 million.
On Friday, Bank of Nova Scotia purchased $9.2 million and sold just $5 million, First Caribbean Bank bought US$813,000 and sold US$1.3 million, JMMB Bank ended buying US$1.87 million and sold $4.8 million, JN Bank purchased $1.16 million with sales of $1.87 million. National Commercial bought US$3.56 million and sold $8.5 million, Sagicor Bank bought $852,000 while selling US$1.99, Victoria Mutual Building Society purchased $693,000 and sold $1.3 million but Citibank purchased US$1.7 million and sold just US$587,000.
J$ revaluation leads to more US$ selloff
On Tuesday dealers purchased US$39.6 million from the public at $127.50 and sold $44.86 million at an average of $128.63 down from $128.93 on Monday.
On Monday, Bank of Nova Scotia bought US$14.27 million and sold $11.68 million on Monday and on Tuesday bought US$5.6 million and sold $10.1 million while National Commercial Bank bought US$8.66 million and sold US$18.95 million on Monday and on Tuesday bought $4.1 million and sold $9.5 million. Sagicor Bank bought US$1.96 million but sold $9.92 million on Monday and on Tuesday purchased $787,000 and sold $1.89 million. JN Bank sold $6 million on Tuesday having bought just $1.6 million and Victoria Mutual Building Society bought US$3.1 million and sold just $347,000.
In foreign exchange trading, dealers in total bought US$56.13 million and sold $73.36 million, representing a net sale of US$17 million on Monday. Purchases of all currencies on Monday amounted to US$60.64 million and selling of $76.95 million and on Tuesday, purchases of all currencies amounted to US$45.44 million and selling of $59.3 million. Including in the trade was the purchase of can$4.68 million and sale of Can$17.16 million.
The sell off of US dollar is unlikely to be coming from stock piling of foreign currency and may be coming from banks selling the currency short hoping to buy back at a lower price in the winter months when the supply is expected to be higher. The financial institutions are also earners of foreign exchange from loans, bonds and fees on foreign currency accounts and would have some of these to sell.
VMBS raises profit in 2014
Victoria Mutual Building Society (VMBS) reports a slight increase in profit of $1 billion for 2014 up from $943 million in 2013.
VMBS generated income of $7.2 billion in 2014 and in 2013 revenues of $6.5 million. The group ended with assets of $97 billion up from $86 billion. Equity capital rose to $11.35 billion from $10.37 in 2013. Mortgage loans rose $31 billion from$27 billion in 2013 and cash funds of $10 billion. Other major assets are Repos amounting to $16 billion, investments mostly in government securities $33.5 billion. VMBS is primarily in the business of providing home mortgages.
