THE Jamaica dollar appreciated by one to three per cent against its three major traded currencies over the week to June 8, 2010.

Yesterday, on average the US dollar sold for 94 cents lower than a week earlier, or $87.18 to US$1 — a one per cent appreciation. Similarly, the British pound sold for $3.37 lower, or $125.22 to £1 — a three per cent appreciation — and the Canadian sold for $1.71 lower, or $82.56 to CDN$1 — a two per cent appreciation.

Over the three months to Jume 1, the local dollar appreciated by 4.3 per cent, 1.7 per cent and 1.26 per cent against the British pound, US dollar and Canadian dollar respectively.

The Jamaican dollar lost a quarter of its value against the greenback between September 2008 to February 2009 before stabilising around 89.50 in 2010. Additionally, over 12 months ending March 2010, the Jamaican dollar lost 41 per cent of its value against Australian dollar and 30.6 per cent against the Real. All movements were compiled utilising Bank of Jamaica data. The BOJ governor, Brian Wynter, last month stated in his quarterly press briefing that “most of appreciation” was “influenced by net private and official capital inflows and, to a lesser extent, tourism receipts”.

Since February, the Jamaican economy had been infused with funds geared at increasing the stability of its currency and accounts. It secured a US$1.2-billion ($107.4-billion) stand-by arrangement with the International Monetary Fund (IMF), and an additional US$800 million ($71.6-billion) worth of multilateral loans — US$200-million from the World Bank US$200-million and US$600 million from the Inter-American Development Bank (IDB). A measure of the increased confidence was the stability of the dollar and the 330 basis point dip in the yield curve on Government of Jamaica Global Bonds so far in 2010.