Jamaica’s NIR jumps another $100m

Jamaica’s Net International Reserves (NIR) rose approximately US$113 in the first 10 days of 2024 data published by the country’s central bank, the Bank of Jamaica shows. The latest increase to the total of US$770 million that was added in 2023 to over US$870 million since the beginning of 2023.
The January inflows push the total at the close last year of US$4.76 billion to US$4.87 billion and just short of the US$5 billion mark. The build-up of the NIR comes against the background of the tight monetary policy pursued by the country’s central bank that has sucked local money from the financial market, by use of certificates of deposit (CDs). Over the past year, the Bank of Jamaica’s open market instruments mainly CDs have moved up by J$74 billion to $247 billion. Apart from funds being bought from the market, the NIR would also have grown by interest earned on the funds being held as reserves which could be around US$200 million per year based on current interest rates internationally.