The Jamaican dollar continues to gain in value against major metropole currencies year-to-date despite inflation at 10 per cent.
Jamaicans are getting a break from the usual currency depreciation, with the dollar appreciating since January.
Things could change for the remainder of the year based on global volatility. But for now, Jamaica benefits.
The biggest savings for Jamaicans travelling or trading in currencies surrounds the movement of the British Pound. That currency has depreciated to its lowest levels since the 1980s against the US dollar, following UK Government measures to curb inflation last week.
Up to Tuesday, however, it is 21 per cent cheaper to buy a British Pound today than in January. That’s J$165 compared to J$207 in January or about J$43.50 less.
As for the Canadian dollar, it’s 9.3 per cent cheaper to buy a Canadian dollar, which currently trades at $110.59, offering J$11.42 savings to Jamaicans.
The US dollar is 1.4 per cent cheaper to buy today than in January at $151.82 or $2.18 less.
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The Bank of Jamaica, which manages the currency float, indicated that it would defend the dollar if required to maintain its interest rate target of between four and six per cent.
“Foreign currency demand during the June 2022 quarter and the associated fluctuations in market conditions necessitated BOJ’s foreign currency sales of US$60.0 million via the B-FXITT facility,” stated the central bank in its latest Quarterly Monetary Policy Report published in August.
Over the last decade, the US dollar added J$101.81 in value from J$50 in 2003 to its current level. The Pound moved by $76.19 over that period from J$86.54 to its current level. The Canadian dollar gained $72.25 from $38.14 to its current level.
