BOJ Forecasts $22b More in Circulation for December

The Bank of Jamaica (BOJ) is forecasting a $22 billion or 13 per cent increase in the total currency to be in circulation for December relative to November 2020 $168.9 billion.

In a statement on Monday, December 14, 2020, the Central Bank said the sum forecast for the end of the month is $190.0 billion, represents an annual nominal growth of 28.2 per cent, compared to 11.5 per cent at the corresponding period in 2019.

Currency in circulation between December 1 and 11 amounted to $6.1 billion or 3 per cent.

This was higher than the $0.5 billion recorded for the corresponding period last year.

BOJ said the forecast is below the five-year average growth rate of 17.3 per cent for the month of December.

The Bank advised that total currency in the hands of the public and in the vaults of financial institutions, as of December 11, totalled $175 billion.

This high stock of currency may reflect the desires of deposit-taking institutions and individuals to hold precautionary cash balances amidst the uncertainties occasioned by the COVID-19 pandemic

Financial institutions, therefore, request more currency from BOJ to satisfy this demand.