KINGSTON, Jamaica – The public’s demand for physical cash ahead of the Christmas holidays was softer than both the central bank and last year’s patterns had anticipated, according to data released by the Bank of Jamaica (BOJ) on Wednesday.

Despite the typical seasonal surge in spending, the net amount of cash issued to banks and the public in the critical shopping period from December 12 to 22 grew by only 1.7 per cent, falling short of the BOJ’s 4.2 per cent forecast and well below the 3.4 per cent growth seen in the same period in 2024. This suggests a milder than expected rush for banknotes and coins.

For the first three weeks of December, the total currency stock held by individuals and financial institutions grew by 2.9 per cent, also lagging behind the central bank’s expectation and last year’s 4.5 per cent increase.

However, the overall amount of cash in Jamaicans’ wallets and purses over the full year has grown significantly. As of December 22, the total currency in circulation stood at $309.1 billion, marking an annual increase of 11.7 per cent. When adjusted for inflation, this translates to a real growth in the public’s cash holdings of 6.5 per cent, a notable turnaround from a real decline of 2.7 per cent the previous year.

The BOJ had projected earlier in the month that cash in circulation would rise by 7 per cent over the entire month of December, as financial institutions typically order more banknotes to meet heightened public demand for holiday shopping and gifting.

The central bank manages the supply of notes and coins daily based on orders from commercial banks, which in turn respond to customer withdrawals and business needs.

The currency stock includes all Jamaican banknotes and coins held by the public and held as vault cash in commercial banks, representing the total physical money available for spending.