Both the Jamaican dollar and US greenback money market liquidity remained moderate last week with a total of J$18.43 billion, as represented by the Bank of Jamaica’s (BOJ) aggregated current balances.

The aggregated closing current account balance fell by J$12.01 billion from J$30.44 billion on February 9, 2024. There were no BOJ interventions in the foreign exchange market via B-FXITT last week. 

On the demand side, broker demand for JMD remained moderately liquid for both short-term and long-term placements, while rates in the retail market have stayed consistent on JMD placements. Similarly in the USD money market, there were minor fluctuations week over week.

However, liquidity has been reasonable with most brokers generally willing to accept long-term money. Last week’s demand for short term rates remains high. 

The Bank of Jamaica Certificate of Deposit auction saw an increase in the average yield from 10.48 per cent to 10.57 per cent, as demand for money market instruments remains high and the auction was oversubscribed. 

Bids received totalled J$42.8 billion relative to the offer size of J$39 billion, which implies a bid-cover-ratio of 1.09. The highest bid rate for full allocation was 11.25 per cent, increasing 26 basis points from the 10.99 per cent in the prior week.