BOJ releases US$60m as forex demand outstrips supply

Jamaica's productive sector asked for far more foreign currency this week than the Bank of Jamaica made available through its market operations.

The central bank supplied US$60 million across two days to help satisfy demand for United States dollars. Even so, importers and other companies needed roughly US$83.8 million above that amount to settle obligations with overseas suppliers.

On Thursday, the BOJ offered US$30 million, while productive-sector requests totalled US$78.7 million. A further US$30 million was put into the market on Friday, when demand climbed to US$65.1 million.

The strain comes as Jamaica's trade gap continues to expand. The latest data show imports rose 3.2 per cent last year to US$7.5 billion, while exports declined 13.4 per cent to US$1.65 billion. That left the country with a trade deficit of US$5.87 billion.

The Bank of Jamaica has continued using its reserves to steady the foreign exchange market. Net international reserves, however, dropped by about US$454 million in April, pointing to sustained market support and wider external-sector challenges.