The Facts:
True
Data from the Bank of Jamaica (BOJ) show that the country’s Net International Reserves (NIR) totalled US$5.13 billion at the end of March 2024.
This represents a US$438.39 million increase over the outturn at the end of the previous month.
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JAMAICA’S NIR ROSE TO US$5.13 BILLION
Jamaica’s Net International Reserves (NIR) rose by US$438.39 million to US$5.13 billion at the end of March 2024, according to data posted on the Central Bank’s website.
An April 5, 2024, bulletin indicates that the outturn equates to 39.4 weeks of goods imports, and 26.4 weeks of goods and services imports.
An adequate supply of foreign exchange reserves is deemed a positive signal that the suppliers of goods and services to Jamaica will get paid.
Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, said consequent on the healthy state of Jamaica’s reserves, “we would still be able to find foreign exchange to pay our overseas supplier bills as they come due.”
The effectiveness of having healthy reserves was tested during the COVID-19 pandemic, when Jamaica lost US$4 billion of foreign exchange inflows.
Dr. Clarke noted that, unlike previous currency supply shocks, the COVID-19-sparked economic fallout did not precipitate a crisis in Jamaica’s foreign exchange position.
“We were able to endure the foreign exchange supply shock, still import goods and services from overseas, and pay those bills as they came due, all because we had a high level of foreign exchange reserves,” he said.
