J$ depreciates by 0.35% relative to the USD

The Bank of Jamaica (BOJ) did not intervene in the foreign exchange market last week, resulting in the local currency losing value against its main American counterpart.

As a result, the greenback selling rate moved from J$155.33 to J$155.88 on June 2, 2023. This depreciation stemmed primarily from increased demand for the USD and currency dealers demanding higher prices. 

Moreover, there was no intervention from the BOJ via its B-FXITT auction to augment supplies. In the meantime, the USD money market remains stable and reasonably liquid. 

Broker market demand for USD has increased for longer-tenured funds with some brokers offering as high as 5.75% for 180 days to clients. 

Rates in the retail area ranged from 3.00% – 4.25% for short-term placements to over 5% for long-term placements.