![]() The currency is divided into 100 cents although the cent denominations are not being used after 2018. The Jamaican Dollar symbol is J$ in order to distinguish the Jamaican Dollar symbol from US Dollar and other Dollar denominated currencies. The Jamaican Dollar is the currency of Jamaica. So it creates more transparency in the market,” he said.Quick Facts About the Jamaican Dollar Notes Country of Origin “So if you are a perpetual buyer or perpetual seller or you are a dealer you can go on this system and every day you will see in real time what the bids on offer are. “What this platform will do is allow all the traders to see all of the bids on offer, all of the buyers to see the bids, all of the sellers to see the bids on offer,” said Byles. The new foreign exchange trading platform that the central bank is introducing is now scheduled for testing and implementation early next year. “It is also important that authorised dealers and cambios work together to facilitate a transparent and smooth functioning foreign exchange market.” “Bank of Jamaica will therefore continue to ensure orderly conditions in the foreign exchange market and will intervene if there is excessive volatility or temporary gaps in supply emerge,” the governor noted. He said the Jamaican Government was committed to maintaining a flexible exchange rate system. “As such, we have observed that the exchange rate has adopted an appreciating trend since November 13, 2019.” “The bank is of the view that most of the extraordinary demand for foreign currency has been satisfied,” Byles said. In the last intervention on November 14, the bank amended its rules to require that all the funds sold to authorised dealers and large cambios be resold to end-users – non-financial commercial entities that are funding obligations for contracted goods and services. In response to what Byles said was the unusual heightened demand, the central bank acted to boost supply by selling US$140 million to the market between October 18 and November 14 via five flash sale operations under the Bank of Jamaica Foreign Exchange and Intervention Trading Tool, B-FXITT. He said that one of the factors influencing the spike in demand for foreign currency was the heightened desire relating to portfolio transactions, combined with retailers’ seasonal re-stocking ahead of the Christmas period. ![]() “This perception was amplified by the weighted average selling exchange rate breaching the psychological threshold of $140 at the end of October this year,” the Governor said. He said that between October 1 and November 12, despite normal daily inflows, the exchange rate depreciated by 5.2 per cent or $7.07, a movement which reversed the appreciation of 1.8 per cent that occurred in September and erased the sense of normal two-way movement that had been evident for an extended period prior to that time. “The impact of this is expected to be partially offset by low global growth and low inflation among Jamaica’s main trading partners, declines in international commodity prices as well as a continued tight fiscal policy,” he said.īyles also seized the opportunity to comment on the recent depreciation in the Jamaica dollar, which he said stimulated much public discussion and highlights its importance to the average Jamaican. That outlook is based on the bank’s expectations for the pass-through effect on prices of previous reductions in interest rates and cash reserves. The central bank expects consumer prices to rise at an annual rate of about 4.5 per cent over the next eight quarters, the Governor said. Sign up for The Gleaner’s morning and evening newsletters.īyles also enumerated other risks to inflation as: stronger than anticipated domestic demand, driven by the improved credit conditions in the economy, which would lead to higher inflation while higher than anticipated production in the agriculture sector, leading to lower rates of increases in food prices, would lead to lower inflation.
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