For December 2024, Bank of Jamaica (BOJ) projects that the value of currency issued by the Bank will increase by approximately $24.4 billion (9.2 per cent), relative to the stock at end-November 2024 ($264.9 billion) (see Figure 1).
The projected currency stock of $289.3 billion at end-December 2024 represents an annual growthrateof 4.3 per cent compared to 18.7 per cent for 2023. This projected deceleration in the growth in the currency stock for 2024 is consistent with a moderation in the growth in nominal GDP, reflected in part in lower inflation.
In real terms, the currency stock is projected to increase by 0.5 per cent inDecember 2024, which compares to the real increase of 11.1 per cent for the previous year.
BOJ recorded net currency issue of $7.4 billion (2.8 per cent) for the period 01 to 12 December 2024, compared to a net currency issue of $1.2 billion recorded over the same period in 2023. Consequently, as at 12 December 2024, the stock of currency in the hands of the public and in the vaults of financial institutions was $272.4 billion (see Figure 2).
Background
Typically, BOJ issues and redeems notes and coins daily in order to meet the demand for cash from individuals and businesses. There is normally a stronger demand for currency during the month of December, associated with increased spending over the holiday period. Financial institutions therefore request more currency from BOJ to satisfy this demand.
Glossary:
- Currency Issue: refers to the value of Jamaican notes and coins issued by Bank of Jamaica in a particular period. A portion of these notes and coins will be held by the public (currency in circulation) while some of the notes and coins will be held by financial institutions in their vaults (vault cash). Bank of Jamaica redeems (buys) or issues (sells) notes and coins to financial institutions when institutions have a demand for cash. The difference between currency issued and that which is redeemed during a period of time is referred to as net currency issue.
- Currency Stock: refers to all Jamaican notes and coins that are held outside Bank of Jamaica.
- Real Currency Growth: reflects the percentage change in the real stock of currency which is calculated as the nominal currency stock divided by the consumer price index (CPI) at a given point in time.
