Jamaica’s Net International Reserves Rose 3.9% in September Despite Interventions

• According to the Bank of Jamaica (BOJ), Jamaica’s Net International Reserves (NIR) stood at US$5,200.53Mn at the end of September 2024, 3.9% higher than September 2023. This improvement in the NIR can be attributed to a 3.7% (or US$186.60Mn) increase in total foreign assets along with an 11.5% decline (or US$9.04Mn) in Foreign Liabilities.
• The rise in foreign assets was due to growth in Currency and Deposits to US$3,582.62Mn from US$3,412.48Mn, Securities (+1.1% or US$17.34Mn) and IMF Reserve Position balance (+0.7% or US$267.10K). However, this was slightly tempered by a 5.4% (or US$1.14Mn) decline in Special Drawings Rights.
• In September, the BOJ intervened in the foreign exchange market four times, injecting a total of US$140Mn in an attempt to stabilise the Jamaican dollar. This represented a decline from August when the BOJ conducted six interventions totalling US$180Mn.
• Jamaica’s September 2024 NIR remains relatively high and equates to 26.3 weeks of goods & services imports (25.3 weeks at the end of August 2024). At this level, the NIR is more than double the international benchmark of 12 weeks of imports. 
• Maintaining an adequate level of reserves is one of the key pillars of underwriting and ensuring macroeconomic stability. The NIR reflects the difference between gross reserves and the country’s IMF loan debts. Gross reserves measure the total value of foreign exchange and monetary gold reserves, special drawing rights, IMF reserve positions, and other assets denominated in dollars.

(Sources: BOJ and NCBCM Research)