NIR surpasses $1 billion

Jamaica’s Net International Reserves climbed back above the billion dollar mark at the end of June as it reached US$1.003 billon. At the end of May the net reserves was US$988 million.

Gross reserves amounted to US$1.88 billion at the end of June an increase of US$14.36 million. The NIR at the end of June represents 17.63 weeks of goods imports and 13.22 weeks of imported goods and services. The increase seems to have emanated from efforts of the Central Bank to get foreign currency released from players who took a long position in foreign currency for investment purposes.

The net reserves reflect $855.40 million that is due to the International Monetary Fund (IMF) that is being held on a short term nature and is therefore not included as a part of the Net International Reserves. Most of this amount would have been received when the first debt exchange took place in 2010 to provide support for the financial sector in case they ran in to liquidity problems. None of this amount has been used to date.