The Bank of Jamaica (BOJ) said that for the month of December approximately $190.5 billion in the stock of currency was issued to financial institutions.

The BOJ said that the amount issued over the period represented an annual increase of 28.0 per cent when compared to an annual growth of 11.5 per cent at end of December 2019.

“The strong annual growth rate in currency issue for 2020 may reflect the desires of deposit taking institutions and individuals to hold precautionary cash balances amidst the uncertainties occasioned by the COVID-19 pandemic and therefore is not an indication that overall spending in the economy for the year has increased,” a recent release stated.

For the period December 21-31, the bank said that the net currency issued was $9.8 billion, with the issue for the period contributing to an overall growth of $21.6 billion or 12.8 per cent in the currency stock or currency in circulation for the month. BOJ said that this was in line with its projection for growth of $22.0 billion or 13.0 per cent.

In keeping with the demand for currency during the holiday period, the BOJ said that it was the norm for commercial banks, building societies and cambios to make greater request for cash and coins in anticipation for increased spending during the Christmas period.

“The rate of growth in currency issue for the month, [however], fell below that for December 2019 (14.5 per cent), making it the lowest growth in a December month over the past decade,” the central bank further noted.

The BOJ said that it anticipated that the majority of the currency issued during December will be redeemed this month, noting that, “for the last five years, net currency redemption in January averaged 77.2 per cent of the net currency issued in the preceding month.”