Gross International Reserves at US$4.7Bn
- Jamaica’s gross international reserves, as at November 17, totaled approximately US$4.7Bn. Governor, Richard Byles, said the figure represents the equivalent of 143.8% of the level considered adequate. Net International Reserves (NIR), at the end of October, totaled US$3.9Bn, and is expected to be stable for the month of November.
- The Central Bank expects gross reserves will remain healthy supported by a current account deficit, ranging between 1.0% and 3.0% of Gross Domestic Product (GDP), which is a sustainable level by traditional measures. Expectations for a recovery in tourist arrivals and spending should also help to bolster reserves.
- The BOJ’s $8.0Bn net open position (NOP) cap, which was temporarily removed in January 2020, will be restored effective December 6, 2021. Net open position, which is used to analyze foreign exchange risk, measures the difference between total assets and total liabilities in foreign currency. However, the cap will be adjusted from the $8.0Bn limit to an asymmetric one, corresponding to a $4.5Bn ceiling for long NOP positions and $7.0Bn for shorter ones. The Central Bank is committed to continuously reviewing these limits annually and amending them if deemed necessary.
(Source: JIS News)