Net international reserves (NIR) for the country closed at US$3.81 billion at the end of September 2022, according to the latest update from the Bank of Jamaica (BOJ).

This represents a US$57 million increase when compared to the US$3.75 million reported for the previous month. The current levels of reserves, the central bank said, supports approximately 36 weeks of goods imports and 24 weeks of goods and services imports.

The BOJ has long said that the preservation of a relatively healthy NIR balance will allow the country to adequately respond to economic shocks, finance its obligations and address near to medium-term eventualities. At current levels, the NIR represents 126 per cent of that deemed sufficient according to the International Monetary Fund’s (IMF) measure of reserve adequacy.

The reserve’s balance stems from over US$4.3 billion in foreign assets, US$2.6 billion of which accounts for currency and deposit securities coupled with US$178.94 million in special drawing rights (SDR) and IMF reserves. This, while foreign liabilities with the IMF totalled US$542.21 million for the month.

The NIR reflects the difference between gross reserves and the country’s IMF loan debts.

During September, the bank said over $206.2 billion of net currency was in circulation; the bulk of which were notes issued and valued at $199.8 billion, $6.2 billion in coins while $256 million in the form of central bank digital currency (CBDC)/JAM-DEX remains in issue.

Touted as a key to expanding financial inclusion, Jam-Dex, through the approved Lynk wallet by the National Commercial Bank (NCB), has been targeting the unbanked population, engaging more users by reducing onerous know your customer (KYC) requirements usually affixed to bank accounts.