Bearish On Jamaican Dollar Amid Widening Current Account Deficit, Poor Growth Outlook

• The Jamaican dollar (JMD) will depreciate over the coming months due to a widening current account deficit and loose monetary policy.
• In the long term, Fitch expects the JMD to weaken steadily as a slow economic recovery weighs on investors’ expected returns and the Bank of Jamaica (BOJ) continues to reduce its participation in the foreign exchange market.
• Fitch revised its 2020 forecast average to JMD144.0/USD, from JMD139.3/USD previously, and its 2021 forecast to JMD149.0/USD, from JMD143.2/USD.

 (Source: Fitch)