Dollar depreciation is due to increase in demand — BOJ

Dollar depreciation is due to increase in demand — BOJ

Friday, January 17, 2020

Print this page Email A Friend!

The most recent depreciation of the dollar is due to increased demand, as supply has remained normal according to the Bank of Jamaica (BOJ). But the bank expects the FX market to soon return to more nomal patterns.

In a news release yesterday, the Bank of Jamaica noted the recent movement in the exchange rate and the renewed expressions of concern by some participants about the pace of movement and the availability of foreign currency supply.

Since the start of the year the exchange rate has depreciated by 3.2 per cent, reversing the appreciation of 2.5 per cent that occurred in December 2019.

“This recent movement in the exchange rate was related to an increase in demand, as supply conditions have remained normal,” the BOJ said.

“In fact, the average of daily inflows of foreign currency into the market for January to date has been approximately US$31 million, which was greater than the average daily inflows for January 2019,” the BOJ said.

The increase in demand has been related, in part, to restocking activities by retailers, the bank said, as well as financial institutions buying on behalf of their customers to fund real sector investments and planned portfolio-related transactions.

The bank said that that traders have also been buying on their own account since the start of the year, to restore their foreign currency positions, having sold more foreign currency to the market than they bought in December 2019.

“These transactions are temporary in nature and Bank of Jamaica expects the foreign exchange market to revert to more normal patterns in the near future,” the BOJ said.

“Bank of Jamaica will continue to monitor activities in the foreign exchange market and stands ready to take appropriate policy actions if the need arises,” the bank said.

Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at




1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed:

6. If readers wish to report offensive comments, suggest a correction or share a story then please email:

7. Lastly, read our Terms and Conditions and Privacy Policy

comments powered by Disqus



Today's Cartoon

Click image to view full size editorial cartoon