BOJ Reports a $21.1Bn Increase in Jamaican Currency Issued for December

• During the last six workdays of December 2024, the Bank of Jamaica (BOJ) issued currency totalling $9.3Bn and redeemed $0.2Bn from the financial system. This net currency issue of $9.1Bn for the period contributed to an overall growth of $21.1Bn or 8.0% in the currency stock for December 2024 relative to the previous month.
• The growth rate of December’s issued currency was lower than the Bank’s projection of $24.4Bn or 9.2% and the 9.3% recorded for December 2023.
• As at 31 December 2024, the currency stock was $286.1Bn, representing an annual increase of 3.1%, compared to 18.7% at end-December 2023. This deceleration is consistent with a moderation in the growth in nominal GDP, reflected in part in lower inflation.
• Adjusted for inflation, the currency stock is estimated to have declined by 0.9% over the period, compared to the real growth of 11.1% for the corresponding period in 2023.
• The Bank anticipates that most of the currency issued during December 2024 will be redeemed during January 2024. For the last five years, net currency redemption in January averaged 77.4% of the net currency issued in the preceding month.
• Typically, the BOJ issues and redeems notes and coins daily to meet the demand for cash from individuals and businesses. There is normally a stronger demand for currency during December, associated with increased spending over the holiday period. Financial institutions therefore request more currency from BOJ to satisfy this demand.

(Source: BOJ)