BOJ Projects A $29.7Bn Increase In Currency Issued For December

• For December 2023, the Bank of Jamaica (BOJ) projects that the value of currency issued by the Bank will increase by approximately $29.7Bn (or 11.7%) relative to the currency stock at the end of November 2023 ($253.7Bn). Currency stock refers to all Jamaican notes and coins held outside the Bank of Jamaica.
• The projected currency stock of $283.4Bn at the end of December 2023 represents an annual growth rate of 21.2% compared to 3.0% for 2022. The projected growth is consistent with higher cash demand for the calendar year 2023 to date and reflects continued growth in both real Gross Domestic Product (GDP) and the prices of goods and services. The projected growth also reflects an increase in vault cash amid a slow return of old currency notes to the Bank of Jamaica.
• When the forecasted change in the general level of consumer prices is considered, the currency stock in real terms is projected to increase by 12.9%, which compares to the real decline of 5.8% for the previous year.
• Typically, the BOJ issues and redeems notes and coins daily in order to meet the demand for cash from individuals and businesses. There is normally a stronger demand for currency during the month of December, associated with increased spending over the holiday period. Financial institutions, therefore, request more currency from BOJ to satisfy this demand.

(Source: BOJ)