Sharp rise in Jamaican$ value

NCB purchased US$32m and sold US$73m at J$130.16 on Thursday & drag the US$ down vs the J$.

The Jamaican dollar enjoyed a big rise in value against the US dollar with the rate for buying funds from the market falling to JS$131.72 and selling by dealers closing at an average of $131.52, down from J$133.06 buying and J$134.76 selling.
The sharp improvement in the value of the local currency may not last in the short term, as the drop in the value of the US dollar versus the Jamaican dollar, was due mostly to big trades by National Commercial Bank well below the average for the rest of the market. The market is now in a period of increased supplies and lower demand that is likely to result in further appreciation of the local currency until April unless the central bank intervenes to buy excess flows from the market.
At the end of 2019, the selling rate for the US dollar was J$127.716 but the currency depreciated during the year to a low of J$141.89 to the US dollar on November 7. National Commercial Bank bought US$32,148,142.99 at an average rate of J$129.83 and sold US$73,145,676 at J$130.16 each. The trade by the country’s largest commercial bank accounted for 48 percent of the total of US$67.5 million purchased and 70 percent of the US$104.3 million sold. After NCB, the next biggest trades were by Bank of Nova Scotia, in buying US$10.3 million, at an average of $132.60 and selling $7 million at $133.54.
The largest single purchase is US$25 million at $129 and the largest sale was US$68.35 million at J$130 each.

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