Jamaica’s international reserves slightly down for June
Current reserves able to support approximately 42.42 weeks of importedgoods
Jamaica’s Net international Reserves (NIR) is trending down with the latest out-turn for June showing that the NIR declined by Us$30.19 million to end the month at Us$3.38 billion.
This is coming from US$3.41 billion reported at the end of May 2021. Based on the figures coming out of the Bank of Jamaica (BOJ), year-over-year the NIR has increased by US$439.45 million.
The NIR was US$2.94 billion at the end of June 2020 but is now US$3.38 billion.
The reserves as at the end of last month is able to support approximately 42.42 weeks of goods imported and 30.12 weeks of imported goods and services.
NIR has been hovering below IMF target
Jamaica came in above the benchmark of US$3.16 billion, as outlined by the International Monetary Fund for March 2020, closing the fiscal year at US$3.24 billion, which was US$0.09 million above the targeted amount. However, the NIR came in below the benchmark outlined as per the new agreement for the 2020/21 fiscal year, which was US$3.49 billion.
As at March 2021, the country ended US$0.17 million below the targeted amount.
However, the BOJ is confident that the quarterly target will hold and sought to assure the foreign exchange market that there is enough liquidity to suffice.
Speaking during the BOJ’S digital quarterly briefing on February 19, Governor Richard Byles remarked that notwithstanding the fallout in tourism earnings due to the dramatic decline in visitor arrivals consequent on COVID19, coupled with lower imports, inflows to the foreign exchange market have remained healthy.
He emphasised that, “Jamaica’s NIR at that time totalling just under US$3 billion as at February 16, should be ‘quite adequate’ to see the country through the coronavirus (COVID-19) pandemic crisis.”
Furthermore, the BOJ governor highlighted the dramatic improvement in remittance inflows, which served to cushion the effects of the fallout in tourism on our balance of payments, while private capital outflows were also tempered by a reduction in capital market foreign exchange investments.