Jamaica’s NIR hits new record

Jamaica Net International Reserves surged to a record monthly close in March, to US$4.15 billion after increasing by $221 million in the month and by $66 million in February, surpassing the highest monthly close in December 2021 of $4 billion.
Reserves fell by $111 million in January to $3.87 billion after a build up to $3.98 billion. The increase in March was accompanied by buoyant foreign exchange inflows in the banking system that resulted in an appreciation of the Jamaica dollar from just over $155 to the US dollar in most of February to a low of $150.9 at the end of March.
The buildup in the reserves would be due to a strong rebound in tourism traffic above the 2019 levels reopening on Jamalco Alumina plant continued strong inflows in remittances which are US$1 billion more per year than in 2019 on an annual basis.
The increase for March is in keeping with ICInsider.com’s forecast in December that the NIR could hit a record for the first quarter of 2023. “With tourist arrivals expected to jump sharply in the first four months of 2023 over 2022 which was about a third lower than in 2019, inflows could be up some fifty percent over 2022 from that sector and could boost the NIR for the first quarter.”