Foreign Exchange Inflows Ease as Jamaican Dollar Faces Seasonal Pressure

Inflows into Jamaica’s foreign exchange market have begun to ease following the end of the summer season, according to NCB Capital Markets’ weekly market guide. The report attributes the decline to seasonal trends and expects continued tapering in the short term as local retailers increase demand for the Jamaican dollar ahead of the Christmas shopping period.

During the review period, the Jamaican dollar weakened slightly by 0.17% against the U.S. dollar, moving from J$161.34 to J$161.62. Meanwhile, liquidity in the Jamaican money market expanded, with aggregate balances held by Deposit-Taking Institutions (DTIs) rising by 12% to J$73.53 billion.

The Bank of Jamaica’s (BOJ) 30-day Certificate of Deposit (CD) auction remained oversubscribed, attracting J$42.24 billion in bids compared to the J$31.50 billion on offer. Yields increased marginally to 5.92%.

Government of Jamaica (GOJ) Treasury Bills also saw strong demand, with all three tenors oversubscribed and yields averaging between 5.15% and 5.44%.

Analysts view the slowdown in FX inflows as a typical seasonal pattern rather than a sign of market weakness. As Jamaica’s winter tourism season approaches, inflows are expected to rebound, helping to stabilize the exchange rate and support broader economic activity.

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