Bank of Jamaica (BoJ) Governor, Brian Wynter, is reporting that the country’s net international reserves (NIR) currently stand at approximately US$1.6 billion.
Speaking at the BoJ’s post-Budget media briefing at the institution’s downtown Kingston headquarters on Thursday (June 14), Mr. Wynter told journalists that the funds are more than adequate “to address the kinds of risks that we typically face, and they far exceed the basic benchmark of 12 weeks of goods and services imports”.
“We can afford to intervene, extensively, in circumstances (arising)…where the underlying flows are adequate to meet current transactions, and the profile for the fiscal accounts reflects a credible and sustainable path that supports macroeconomic stability,” he stated.
Meanwhile, Mr. Wynter is anticipating that at the end of the 2012/13 fiscal year the NIR will exceed “our risk weighted adequacy benchmark” by some US$270 million.
“I expect gross reserves to be sufficient to cover 15 weeks of projected goods and services imports, above the 12-week minimum that we use,” he stated.
Mr. Wynter pointed to the likelihood of “quite a bit” of movement in the level of the reserves, as the BoJ moves to contend with fiscal issues that may arise, such as exchange rate stability.
“We will use our reserves (if necessary) to ensure that we have stability,” he stated.
By Douglas McIntosh, JIS Reporter