Both Jamaican and American dollar liquidity in Jamaica remained high last week.

This could be explained by the fact that were no Bank of Jamaica (BOJ) interventions in the foreign exchange market via B-FXITT last week. 

On the demand side, broker demand for Jamaican currency continued to increase, as brokers were prepping for encashments that would stem from tax season. 

In the USD money market, broker market demand for the greenback remained high, particularly for longer-tenured funds. 

As it relates to money market demand, demand for money market instruments remained high with investors oversubscribing the recent Bank of Jamaica (BOJ) auction. 

The average yield from the BOJ’s 30-day competitive price auction saw an increase to 10.78 per cent versus 10.63 per cent in the prior week. The auction was oversubscribed with bids received totalled J$42.7 billion relative to the offer size of J$42 billion. 

The highest bid rate for full allocation was 11.99 per cent, which increased from 11.20 per cent, in the prior week.