Chart Of The Week: The Downward Streaking NIR vs. The Sliding Jamaican Dollar

Source: Bank of Jamaica

diGJamaica has juxtaposed the rising exchange rate with the declining net international reserves. The graph above shows an interesting, albeit exaggerated, interaction between the two. The Bank of Jamaica has had to, on occasion, sell currency from the NIR into the market in order to halt or ease the rate of the decline in value of the currency.

The faster the green line rises, the faster our currency loses value. In the period shown, the J$ has lost ~14% of its value. At the same time, the net international reserves has lost ~53% of its value.