Jamaica’s Net International Reserves (NIR) has reflected a shape dip.
The NIR represents net external assets such as foreign currencies, other assets denominated in foreign currencies, gold reserves, special drawing rights (SDRs), and IMF reserve positions.
These assets, according to the IMF may be used for “direct financing of international payments imbalances, or for indirect regulation of the magnitude of such imbalances via intervention in foreign exchange markets in order to affect the exchange rate of the country’s currency”.
According to Bank of Jamaica (BOJ), in May 2020 the NIR declined by US$228 million and that at the end of the month the reserves were at a little over US$2.9 billion.
No reason has been given for the dip but some are of the view that it is because of the pandemic, which saw a decline in trade and travel, and remittances, which affected all economies.
Shannon Dale Reid