Warning signs from November’s NIR build

Jamaica’s Net International Reserves (NIR) grew by US$113 million during November to end at US$2.56 billion in one of the worse months for foreign exchange inflows. The build-up of the NIR in November is a telling sign of the revaluation that is coming for the Jamaican dollar, in the months ahead, as inflows of foreign exchange increase in the winter months ahead.
The Jamaican dollar made gains against the four major foreign currencies with the rates that dealers sold the various currencies at declining on Wednesday. On Wednesday dealers bought the equivalent of US$34,294,467 of all currencies and sold US$30,046,671, compared to US$34,163,768 purchased and US$38,672,874 sold on Tuesday.
In US dollar trading, dealers bought US$30,548,763 compared to US$28,047,652 on Tuesday. The buying rate for the US dollar rose by 20 cents to $128.15. A total of US$27,155,752 was sold versus US$35,449,849 on Tuesday, with the selling rate slipping by 7 cents to $128.84. The Canadian dollar buying rate dropped $2.10 to $93.89, with dealers buying C$1,544,033 and selling C$789,198 at an average rate that declined by 26 cents to $96.94. The average rate for buying the British Pound climbed 65 cents to $161.47 for the purchase of £1,660,805 while £1,176,733 was sold with a slip of 9 cents, to end at $163.22.
At the end of trading on Wednesday, dealers sold €741,217 with the selling rate for the Euro, closing with a fall of 65 cents to $138.73, according to data from Bank of Jamaica. Dealers purchased €481,964 of the European common currency at $136.91 after jumping $3.27. The US dollar equivalent of other currencies traded, amounts to US$6,948 being bought and selling of US$8,208.
Highs & Lows| Notable changes to the highest and lowest rates for the regularly traded foreign currencies on Wednesday, include a rise of $2.90 in the lowest selling rate for the US dollar to end at $124. The highest selling rate for the British Pound dropped $5.66 to $166.60. The highest buying rate for the Euro rose $1.20 to $137.60, the highest selling rate moved down by $1.07 to $143.22 and the lowest selling rate rose $1.25 to $133.25.