According to the Bank of Jamaica, Jamaica’s Net International Reserves (NIR) decreased by US$110.61 million, or 2.78 per cent to US$3.87 billion in January 2023, down from the US$3.98 billion reported for the previous month. The decline in reserves was due to a decrease of US$101.32 million in foreign assets, and a concurrent increase of US$9.28 million in foreign liabilities.
The decline in foreign assets was attributable to a decrease in ‘Currency and Deposits’ (down by US$117.72 million) but was moderately offset by elevations in ‘Securities’ (up by US$13.10 million) and ‘Special Drawing Rights (SDR) & International Monetary Fund (IMF) Reserve Position’ (up by US$3.29 million).
“Looking ahead, we anticipate moderate increases in the NIR over the short-term.”
JN Fund Managers Ltd
Meanwhile, foreign liabilities increased due to a rise in International Monetary Fund liabilities. At its January level, Jamaica’s NIR represents approximately 25 weeks of goods and services imports, which more than doubled the 12-week benchmark.
Intensified by five central bank interventions during the month of January, totalling US$140 million, January marked a decline in reserves, following December’s significant growth.
In an analysis, JN Fund Managers Ltd said: “Looking ahead, we anticipate moderate increases in the NIR over the short-term. However, this is contingent on the Jamaican dollar returning to appreciation, having depreciated by 2.01 per cent year to date and on the back of 1.96 per cent appreciation last calendar year.”
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