JMD Trading at Lowest Rate since September 2016

Some people have lost millions by betting against the Jamaican dollar in recent months, as the local currency is now trading at its lowest rate since September 2016.

It opened at an average 127.81 to the US on Friday morning.

Governor of the Bank of Jamaica, Brian Wynter, says their new system for managing the demand for US dollars has been working well.

Mr. Wynter says the central bank’s new Foreign Exchange Intervention and Trading Tool, B-FXITT has helped them better predict demand for US dollars.

They’ve also been willing to sell at a loss in order to keep the market stable.

Mr. Wynter says despite the interventions and success of B-FXITT, some market players never learned their lesson, allowing fear mongering get the better of them.

As a result, he says some people took another heavy loss in September by betting against the Jamaican dollar.

The BOJ Governor was speaking at a Jamaica Chamber of Commerce Breakfast Forum this week.

Meanwhile, Mr. Wynter is urging businesses to tell their foreign exchange dealers how much currency they will need in advance.

He says this will help the BOJ meet the demand, which in turn will have a positive impact on the exchange rate.

However, he says giving this information is not to be mistaken for a foreign currency order.

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