JAMAICA’S net international reserves (NIR) exceeded US$6.15 billion at the end of August 2025, the highest-ever recorded with the country also maintaining that without relying on borrowed foreign funds, the Bank of Jamaica (BOJ) said on Thursday.

The strong reserve position signals increased economic stability and greater monetary policy autonomy following the extensive economic reforms the country has undergone in recent years.

“The inadequate levels of reserves of the past was yet another symptom of the macroeconomic imbalances in the economy which the economic reforms addressed,” Dr Wayne Robinson, senior deputy governor of the BOJ told Jamaica Obserer. “The persistent fiscal deficits and overvalued exchange rate led to wide deficits on the current account of the balance of payments which then led to the drain on reserves.”

Jamaica has made progress correcting these imbalances through fiscal discipline and exchange rate adjustments, resulting in consecutive years of current account surpluses, Robinson said.

Remittances — especially those received during and after the COVID-19 pandemic — along with inflows from the Government, also supported greater foreign exchange liquidity.

“Remittance inflows contributed to the improved balance of payments and flows into the foreign exchange market,” Robinson added. The BOJ also phased out US dollar certificates of deposit, a borrowing instrument, redeeming them as they matured.

Data from the central bank showed Jamaica’s NIR rose by US$37.74 million from July 2025 to reach US$6,151.46 million in August. This marked a 23 per cent increase compared to August 2024, when reserves stood at US$5,004.89 million. The country’s foreign assets, including currency and deposits, accounted for US$3.46 billion, with securities valued at US$2.47 billion.

The reserves provide coverage of 50.96 weeks of goods imports and 31.82 weeks when including goods and services, indicating a strong external position.

Governor Richard Byles, in the central bank’s August 21 monetary policy press statement, said the elevated reserve levels allow the central bank to better manage exchange rate volatility. “The reserves stand at a historically high and healthy level, supported by strong fundamentals and interventions to smooth out volatility in the foreign exchange market,” Byles stated.

Jamaica’s current account remains in surplus, supported by growth in remittances and tourism amid global economic uncertainties. The BOJ projects reserves to improve further in the near term, although risks remain, including external pressures from US trade and immigration policy adjustments and geopolitical tensions that could affect inflation and supply chains.