The domestic money market was moderately liquid last week for Jamaican and US dollars, with a total of J$30.48 billion in circulation, as represented by the aggregated current balances held by deposit-taking institutions (DTIs). 

This was J$6.7 billion higher than the previous week due to salaries being paid out. On the demand side, broker demand for JMD remained consistent for both short-term and long-term funds.

In the USD money market, liquidity remained reasonable with most brokers’ demand remaining high for longer-tenured funds. Demand for money market instruments remains with investors oversubscribing the most recent Bank of Jamaica (BOJ) auction.

Bids received totalled J$41.7 billion relative to the offer size of J$34.5 billion, which implies a bid-to-cover ratio of 1.21. However, this is down from 3.58 for the week ending May 17, as the BOJ offered only J$7.0 billion to the market. 

The average yield from the BOJ’s 30-day competitive price auction increased to 10.19 per cent relative to 10.00 per cent in the prior week.  At the close of the week ending May 24, it took 0.26 per cent fewer Jamaican dollars to purchase one USD, as the local currency picked up marginal ground in trading activity. 

The weighted average selling rate for US$1 was J$156.60 at the close of trading last Friday. This appreciation resulted from earners of FX selling to the markets as they continued to observe the downward trend in the price of USD.