Net International Reserves
Jamaica’s Net International Reserves totaled US$2,672.77 million as at May 2017, reflecting a decrease of US$176.10 million relative to the US$2,848.87 million reported as at the end of April 2017 (see figure 1).
Changes in the NIR resulted from a decline in Foreign Assets of US$170.66 million to total US$3,238.72 million. Currency and Deposits contributed the most to the decrease in Foreign Assets. This as Currency and Deposits as at May 2017 totaled US$2,935.37 million reflecting a decline of US$170.63 million compared to US$3,106.00 million booked as at April 2017. Foreign Liabilities for May 2017 reflected an increase of US$5.44 million to total US$565.95 million. The increase stemmed from a growth in liabilities to the ‘IMF’ of US$5.44 million. Liabilities to the IMF which accounted for 100% of total foreign liabilities, it increased to a total of US$565.95 million as at the end of May 2017 relative to US$560.51 million recorded in April 2017.
At its current value, the NIR is US$368.05 million more than its total of US$2,304.72 million at the end of May 2016.
The current reserve is able to support approximately 36.03 weeks of goods imports or 20.88 weeks of goods and services imports.
The country surpassed the benchmark of US$2.56 billion outlined by the International Monetary Fund in the 14th Review and Adjusted Agreement under the Extended Fund Facility (EFF). Jamaica and the IMF have entered into a New Agreement to support growth and create jobs with the international body citing, “Jamaica has made good progress under the previous IMF – support program.” As such the entity has approved a new US$1.64 billion loan for the country. According to the IMF the loan is, “intended as insurance to support the country’s ongoing reform program to tackle poverty, create jobs, and improve living standards.” As such the Net International Reserve (NIR) target outlined as per the new agreement for the 2017/18 fiscal year is US$3.02 billion (see figure 2 above).
[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”]
[/fusion_builder_column][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”]
Disclaimer:
Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. 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.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]
