Jamaica dollar has devalued by approximately 6.7% since the start of 2021
/ Our Today
administratorMonthly weighted average selling exchange rate at end of March 2021 was J$147.86
The Jamaica dollar continues to lose value, declining by 6.7 per cent since the start of the year.
The exchange rate opened the 2021 calendar year at J$142.65 to US$1.00 and has since devalued to J$152.13 as of April 19, 2021.
The monthly weighted average selling exchange rate at the end of March 2021 was J$147.86, while the buying rate was J$146.27.
The Jamaican dollar experienced a rapid depreciation in the exchange rate during 2020 due to the pandemic’s impact on key sectors. The exchange rate in 2020 closed at J$142.65 to US$1.00, after opening the year at J$132.57, resulting in a 7.6 per cent depreciation.
Over the past 12 months, the central bank has implemented numerous initiatives to provide liquidity to and ensure the continued smooth functioning of the foreign exchange market. The Bank of Jamaica (BOJ) conducted B-FXITT intervention sales, directly sold FX to major players in the energy sector, reduced the foreign currency cash reserve requirement, introduced FX swap arrangements, and provided US dollar bond repurchase facilities.
In February this year, BOJ Governor Richard Byles said that, “overall, inflows into the foreign exchange market have remained healthy. Between March 2020 and January 2021, daily purchases of US dollars by authorised dealers and cambios from end users averaged US$31.2 million, slightly lower than the average of US$33.4 million recorded last year”.
Similarly, daily sales to end users averaged US$27.7 million over March 2020 to January 2021, slightly lower than the average of US$29.0 million a year earlier.
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