Currency Depreciation Has Slowed – BOJ

Currency Depreciation Has Slowed – BOJ

The Bank of Jamaica (BOJ) is reporting that the pace of foreign exchange rate depreciation has slowed significantly.

Governor, Richard Byles, said that the exchange rate, as of February 16, 2022, was J$157.42 to US$1, representing four per cent annual point-to-point depreciation.

He was speaking during the BOJ’s digital quarterly media briefing on Monday, February 21.

Mr. Byles said the deceleration in the pace of depreciation, versus last year, reflects actions taken by the Bank in response to the higher-than-targeted inflation rate, ranging between four and six per cent.

He told journalists that the entity has sold US$301.9 million to the market via the BOJ Foreign Exchange Intervention and Trading Tool (B-FXITT), compared to US$88.7 million for the corresponding period of 2020.

Additionally, the Governor said the BOJ sold US$115.3 million directly to the energy sector.

Mr. Byles said for the calendar year up to February 3, 2022, daily purchases of US dollars by authorised dealers and cambios averaged approximately US$37.2 million.

This, he indicated, was 12 per cent greater than the average of US$33.3 million for the corresponding period last year.

Mr. Byles advised that Jamaica’s gross international reserves totalled US$4.3 billion as of February 16, 2022, “representing the equivalent of 140 per cent of the level considered adequate”.

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