Jamaica’s Net International Reserves (NIR) grew above five per cent to total US$4.2 billion at the end of March, according to the latest data from the Bank of Jamaica (BOJ).

This was US$220.7 million more than the US$3.9 million seen in February and represents the balance’s return to the $4-billion mark since December 2021.

The rise in reserves stemmed from increases in foreign assets which went up US$212.5 million to total US$4.6 billion as well as a US$8.2 million decline in foreign liabilities. Foreign assets were strengthened by growth in currency and deposits, up US$230.2 million, and also as a result of improvements in the special drawing rights (SDR) and International Monetary Fund (IMF) reserve position which climbed to US$165.8 million.

At the end of the month, the total reserves placed the country in a position to be able to pay for 26 weeks of goods and to service imports — more than doubling the 12 weeks benchmark.

A country’s NIR, which is used as a benchmark to assess its economic strength and ability to withstand foreign exchange volatility, for the reported period was also able to gain strength as a result of no interventions in the foreign currency market by the central bank. This was further supported by continued appreciation of the Jamaican dollar and strong remittance inflows.

Remittances, which continues to trend upward, up to February totalled US$226.6 million and follows from net values of US$3.2 billion recorded for 2022.

During March, BOJ data also outlined the base money indicators which saw total currency issues of $224.5 billion — $4.7 billion above the previous month. A breakdown of the total issue reflects $218 million in notes, $6.3 billion in coins and $257 million in Jam-Dex, or central bank digital currency (CBDC).