On June 5th 2013, to be exact the US Dollar closed trading selling at an average $100.08:US$1, representing the breaking of the psychological barrier $100 to US$1. It further went on to end trading for the month selling for an average $101.38 to US$1. This represents a 2% depreciation since the 31st of May when it traded for $99.45 to US$1 to close the month.
In a prior blog post about the exchange rate, diG had noted that the staff of the IMF believes that the Jamaican currency has been overvalued. To support their opinion three different methodologies were used to assess the currency: MB, ES and EREER. At the time of the assessment the overvaluation was estimated to be between 9-22 percent based on the respective methodologies.
The current movement of the dollar is merely market forces at work and the dollar finding its ‘true value’. diGgers stay up to date with the monthly movement of the exchange rate and its impact on the conditions of the IMF program by checking out our IMF Special Report. Fueled by research, it is the first and only online information portal about Jamaica’s relationship and interaction with the IMF, providing valuable news, data, timelines and resources.