Net International Reserves- June 2020

Net International Reserves- June 2020

Jamaica’s Net International Reserves (NIR) totaled US$2,949.26 million as at June 2020, reflecting an increase of US$44.77 million relative to the US$2,904.49 million reported at the end of May 2020 (see figure 1).

Changes in the NIR resulted from an increase in Foreign Assets of US$33.31 million to total US$3,905.02 million compared to the US$3,871.71 million reported for May 2020. ‘Currency & Deposits’ contributed the most to the increase in Foreign Assets. ‘Currency & Deposits’ as at June 2020 totaled US$3,361.33 million reflecting an increase of US$32.18 million compared to US$329.15 million booked as at May 2020.

‘Securities’ amounted to US$322.66 million; US$0.54 million more than the US$3322.12 million reported in May 2020. While, ‘SDR & IMF Reserve Position’ amounted to US$221.03 million; US$0.59 million more than the US$220.44 million reported In May 2020. Foreign Liabilities for June 2020 amounted to US$955.76 million compared to the US$967.22 million reported for May 2020. Liabilities to the IMF accounted for 100% of total foreign liabilities, reflecting a US$11.46 million decrease month over month from May 2020.

At its current value, the NIR is US$86.05 million less than its total of US$3,035.31 million as at the end of June 2019. The current reserve is able to support approximately 56.33 weeks of goods imports or 38.15 weeks of goods and services imports.

Figure 1

Figure 2

The country came in above the benchmark of US$3.155 billion outlined by the International Monetary Fund for March 2020, closing the fiscal year at US$3.24 billion, US$0.09 million above targeted amount.

On May 15, 2020, the Executive Board of the IMF approved Jamaica’s request for access to the IMF’s Rapid Financing Instrument in the amount of approximately US$520 million. This represents 100% of Jamaica’s quota and the maximum amount available under this facility.  Dr. Nigel Clarke indicated that, “The resources approved by the IMF will be extremely valuable in boosting Jamaica’s foreign exchange reserves, and in assisting Jamaica to meet COVID-19 related balance of payments challenges. Our fiscal and monetary reforms have provided Jamaica with options that many countries do not have. Public body reform, inclusive of divestment and reintegration of public bodies, as well as recent fiscal over-performance has provided substantial cash resources that will be deployed to assist in the financing of the fiscal impact of the COVID-19 pandemic.”

The Net International Reserve (NIR) target outlined as per the new agreement for the 2020/21 fiscal year is US$3.485 billion (see figure 2 above). As at June 2020, the Country is US$0.54 million below the targeted amount.



Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.