Another Boost for Jamaica’s Reserves

  • Jamaica’s Net International Reserves (NIR) increased to US$6.80Bn at the end of February 2026, up US$72.51Mn (+1.1%) relative to January 2026 and 24.3% higher than February 2025. The month-on-month improvement was largely driven by an expansion in foreign assets, along with a slight decline in foreign liabilities.
  • Total foreign assets increased by US$72.44Mn to US$6.82Bn. The growth was primarily supported by a US$69.73Mn increase in Currency & Deposits, alongside gains in Securities (US$16.17Mn). These increases were partially offset by a US$13.26Mn decline in Special Drawing Rights (SDR) holdings and a US$0.19Mn decline in the International Monetary Fund (IMF) Reserve Position.
  • Reflecting a slight reduction in obligations to the IMF, foreign liabilities declined marginally by US$0.07Mn to US$12.98Mn, which further strengthened the overall reserve position.
  • At its current level, Jamaica’s NIR cover approximately 55.9 weeks of goods imports and 36.2 weeks of goods and services imports, well above the international adequacy benchmark of 12 weeks. The reserves also represent 156.47% of the IMF’s Assessing Reserve Adequacy (ARA)[1] metric, reinforcing the country’s strong external liquidity position.
  • Finance and Public Service Minister, Hon. Fayval Williams, at the opening of the 2026/2027 Budget Debate in the House of Representatives on Tuesday, March 10, 2025, emphasised the importance of maintaining strong reserve buffers, noting that the NIR plays a critical role in shielding Jamaica from external economic shocks, including global commodity price volatility and geopolitical uncertainties. Maintaining robust reserves ensures the country has the foreign currency needed to finance imports while supporting stability in the foreign exchange (FX) market.
  • The continued strength in reserves is being supported by steady inflows from remittances and the recent uptick in external financing, which continues to provide the Bank of Jamaica (BOJ) with the FX required to manage market volatility and maintain confidence in the Jamaican dollar.

(Sources: BOJ, JIS and NCBCM Research)

 

[1] The IMF's Assessing Reserve Adequacy (ARA) metric is a risk-weighted, composite formula used to determine if a country's foreign exchange reserves are sufficient to handle potential balance of payments shocks. It calculates an adequate reserve level by covering a percentage of short-term debt, other portfolio liabilities, broad money, and exports.