During the last ten workdays of December 2021 (December 20 to 31), the Bank of Jamaica (BOJ) recorded a net currency issue of J$12.0 billion to financial institutions (commercial banks, building societies and cambios). 

The issue for the period contributed to an overall growth of $22.5 billion or 11.0 per cent in the currency stock for December 2021 relative to the previous month. This was broadly in line with the Central Bank’s projection for growth of $23.1 billion or 11.3 per cent. The rate of growth in currency issue for the month was lower than the 12.8 per cent growth for December 2020.

At December 31, 2021, the stock of currency was $226.9 billion, representing an annual increase of 19.1 per cent, relative to an annual growth of 28.0 per cent at end-December 2020. When the estimated change in consumer prices is considered, the estimated real annual growth in currency for the period was 10.9 per cent, compared to 21.6 per cent for the corresponding period in 2020. This deceleration reflects a moderation in orders relative to 2020 when there was considerable uncertainty about the effect of the pandemic.

The BOJ anticipates that the majority of the currency issued during December 2021 will be redeemed during January 2022. For the last five years, net currency redemption in January averaged 75.8 per cent of the net currency issued in the preceding month.

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.