The Jamaican dollar depreciated slightly by 0.26 per cent relative to the American currency week-over-week.

As a result the selling rate moving from J$155.28 on July 21, 2023 to J$155.68 to US$1 at the end of last week. Of note, the Jamaican dollar has trended around the J$155 mark for the last three months, suggesting that the dollar is establishing some level of stability given the wide swings seen back in 2022.

It is anticipated that the Bank of Jamaica (BOJ) will continue to lend support in the months to come by augmenting supplies of the greenback as needed, especially with August and September usually being high-demand months for USD. This will aid in reducing wide fluctuations in the local currency.

In the USD money market, liquidity continued to fluctuate week over week, and broker market demand for USD continued to increase for longer-tenured funds.