Durrant Pate/ Contributor

Jamaica has seen a 27.1% contraction in its money market liquidity as measured by the aggregated current balances held by Deposit-Taking Institutions (DTIs).

As at January 2, 2026, the total aggregate current balance amounted to J$63.75 billion, marking a 4.1% decline. Over the 2025 calendar year, the current balance showed a 27.1% year-over-year decline, moving from $91.52 billion at December 31, 2024, to close out the year at $66.69 billion. 

The yield on the Bank of Jamaica’s (BOJ’s) 30-day Certificate of Deposit increased in last week’s auction. The yield, which had reached a high of 6.28% in the October 29 auction, closed at 5.96% on December 31, up from 5.87% the prior week. 

Total bids reached J$38.74 billion against a J$29.50 billion offer, at a bid-to-offer ratio of 1.31x. The highest bid rate for full allocation was 5.99%. The next auction is scheduled for Wednesday, January 7. 

Additionally, the BOJ conducted a 14-day Repurchase Operation with deposit-taking institutions of J$2.50 billion. The total value of bids received was $2.75 billion, implying a 1.1x bid-offer ratio. The weighted average yield was 6.18%, marginally lower than the 6.28% in the previous auction. 

FX market operation

In the foreign exchange market, the Jamaican dollar appreciated against the US dollar last week, with the selling rate strengthening to J$159.47 on January 2, coming from J$159.90. While there was no Bank of Jamaica (BOJ) intervention in the market, the BOJ has indicated that it will begin selling US dollars during the week to help stabilise the exchange rate.

This is being done to contain potential inflationary pressures stemming from Hurricane Melissa, particularly as agricultural supply disruptions place upward pressure on domestic prices.