The Jamaica dollar closed 2019 at $132.57 versus the US dollar, an annual depreciation of 3.7 per cent. This year-over-year change in the exchange rate was moderate compared to annual depreciation of 2.1 per cent in the previous year and appreciation of 2.8 per cent in 2017.
Since the implementation of BFXITT (Bank of Jamaica’s (BOJ) — Foreign Exchange Intervention and Trading Tool) in 2017, the exchange rate has exhibited regular two-way movement. During 2019, the exchange rate produced 119 days of depreciation and 132 days of appreciation. This compares to 137 days of depreciation and 114 days of appreciation during 2018.
An improving economy means the country is earning more foreign exchange (FX) than before, so the volume of trading in the market continues to grow. The moderate depreciation during 2019 occurred within a context of buoyant US dollar supply, which was marginally outweighed by demand.