Jamaica’s Net International Reserves (NIR) is currently running just below the International Monetary Fund’s (IMF) March 2021 target of US$3.49 billion.

The NIR out-turn last month increased to US$3.31 billion, reflecting a jump of US$303.15 million relative to the US$3.01 billion reported at the end of February 2021. However, this performance is US$0.17 million below the targeted amount of US$3.49 billion, as per the new agreement with the IMF for the 2020/21 fiscal year, which ended on March 31, 2021.

The country came in above the IMF benchmark of US$3.16 billion in March 2020, closing the fiscal year at US$3.24 billion, which was US$0.09 million above targeted amount. The US$303.15 million increase in the NIR last month resulted from a US$273.06 million increase in the Bank of Jamaica’s (BOJ’s) foreign assets, which total US$4.24 billion compared to the US$3.97 billion reported for February 2021.

Currency and deposits contributed the most to the increase in foreign assets. Currency and deposits as at March 2021 totalled US$3.68 billion, reflecting an increase of US$272.45 million compared to US$3.40 billion booked as at February 2021.

Securities amounted to US$344.46 million, which was US$3.99 million more than the US$340.47 million reported at February 2021. Special drawing rights and IMF reserve position for March 2021 amounted to US$217.70 million, which was US$3.38 million less than the US$221.09 million reported at February 2021.

IMF LIABILITIES ACCOUNTED FOR LION’S SHARE OF LIABILITIES

Liabilities to the IMF accounted for 100 per cent of total foreign liabilities, amounting to US$924.20 million, which reflected a month on month decrease of US$30.09 million in comparison to the US$954.29 million recorded for February 2021. At its current value of US$3.31 billion, the NIR is able to support approximately 53.65 weeks of goods imports and 38.71 weeks of goods and services imports.

BOJ Governor Richard Byles says that inflows to the foreign exchange market have remained healthy, notwithstanding the fallout in tourism earnings due to a dramatic decline in visitor arrivals consequent on COVID-19, coupled with lower imports.

Speaking during the BOJ’s digital quarterly briefing on February 19, 2021, Byles noted that Jamaica’s NIR totalling just under US$3 billion as at February 16 should be “quite adequate” to see the country through the coronavirus pandemic crisis.

In addition, the BOJ governor pointed to a dramatic improvement in remittance inflows, which served to cushion the effects of the fallout in tourism on our balance of payments, while private capital outflows were also tempered by a reduction in capital market foreign exchange investments.