Resulted in US$ depreciating marginally
The Jamaican dollar depreciated week over week by 0.04 per cent moving from a selling rate of $155.27 to $155.33 last Friday (May 26).
This slight depreciation reflects a slightly higher asking price for US$ from market participants. The Jamaican dollar had a mixed performance against the other two major trading currencies.
The Canadian dollar advanced by J$0.32 to be selling at the end of the trading week on Friday at J$115.52, up from J$115.20 in the previous week while it gained against the British pound went down J$1.77 to sell for J$192.57 compared to J$194.34 in the previous week.
The US dollar money market remained stable and moderately liquid. Broker market demand for American currency has increased for longer-tenured funds. Central Bank Governor, Richard Byles told his quarterly news briefing last week that the foreign exchange market remains “relatively stable” and the bank projects that the gross reserves will continue to remain adequate in the medium-term.
Year to date the Central Bank has sold approximately US$410 million via its BFXITT facility. Considering the forecast for reserves, the bank remains in good position to support FX market stability.