Tuesday 7 July, 2020

Jamaican dollar closes at $136.07

The Jamaica dollar lost 60 cents of its value on Monday, according to the Bank of Jamaica (BOJ) trading summary.

The dollar closed at $136.07 on Monday compared to $135.47 on the previous trading day. The dollar traded at its strongest position on March 10 at $135.42 to US$1 with its weakest position last Tuesday at $136.97.

The weakening of the Jamaica dollar against the US dollar was not uniformly matched with other major trading partners.

The Canadian dollar closed at $97.94 from $98.27 and the British pound closed at $168.27 from $165.38.

BOJ announced temporary measures to increase liquidity in the foreign exchange system last week.

Earlier this month the BOJ increased by 5.0 percentage points the limit on the foreign currency net open positions (FXNOP) of authorised dealers. It increased to +/-25 per cent from +/-20 per cent of regulatory capital denominated in Jamaica Dollars, effective 19 March. This temporary increase will remain in effect until June 30. 

The central bank said that the FXNOP limit was calibrated to ensure adequate levels of liquidity in the foreign currency market.

Upon its introduction in 2018, BOJ had committed to conducting a periodic review of the limit. The decision to temporarily increase the limit is based on the prevailing market conditions.

 

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