Jamaica reaches record high foreign reserves, no borrowing

JAMAICA’S net international reserves (NIR) exceeded US$6.15 billion at the end of August 2025, the highest-ever recorded with the country also maintaining that without relying on borrowed foreign funds, the Bank of Jamaica (BOJ) said on Thursday.

The strong reserve position signals increased economic stability and greater monetary policy autonomy following the extensive economic reforms the country has undergone in recent years.

“The inadequate levels of reserves of the past was yet another symptom of the macroeconomic imbalances in the economy which the economic reforms addressed,” Dr Wayne Robinson, senior deputy governor of the BOJ told Jamaica Obserer. “The persistent fiscal deficits and overvalued exchange rate led to wide deficits on the current account of the balance of payments which then led to the drain on reserves.”

Jamaica has made progress correcting these imbalances through fiscal discipline and exchange rate adjustments, resulting in consecutive years of current account surpluses, Robinson said.

Remittances — especially those received during and after the COVID-19 pandemic — along with inflows from the Government, also supported greater foreign exchange liquidity.

“Remittance inflows contributed to the improved balance of payments and flows into the foreign exchange market,” Robinson added. The BOJ also phased out US dollar certificates of deposit, a borrowing instrument, redeeming them as they matured.

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Data from the central bank showed Jamaica’s NIR rose by US$37.74 million from July 2025 to reach US$6,151.46 million in August. This marked a 23 per cent increase compared to August 2024, when reserves stood at US$5,004.89 million. The country’s foreign assets, including currency and deposits, accounted for US$3.46 billion, with securities valued at US$2.47 billion.

The reserves provide coverage of 50.96 weeks of goods imports and 31.82 weeks when including goods and services, indicating a strong external position.

Governor Richard Byles, in the central bank’s August 21 monetary policy press statement, said the elevated reserve levels allow the central bank to better manage exchange rate volatility. “The reserves stand at a historically high and healthy level, supported by strong fundamentals and interventions to smooth out volatility in the foreign exchange market,” Byles stated.

Jamaica’s current account remains in surplus, supported by growth in remittances and tourism amid global economic uncertainties. The BOJ projects reserves to improve further in the near term, although risks remain, including external pressures from US trade and immigration policy adjustments and geopolitical tensions that could affect inflation and supply chains.

Source: Jamaica Observer

In reply to Slipfeeler

Now the JLP can afford the PNP ideas!

In reply to Slipfeeler
What’s the value of the J$?

Asking for some citizens. I remember when folks in the Yard used to laugh at Guyana when that dollar was $25 to US$1.

In reply to Chrissy

Jamaica needs to revalue its dollar like Ghana, where the US Dollar depreciated against the Ghanian Cedis. Back in the days Jamaican dollar was valued higher than USD, those days no one wanted USD. Then came IMF and currency devaluations, that’s the discriminatory policies of the IMF against developing countries, in fact, the IMF and US Financial Officials are not happy that Ghana revalued their dollar without borrowing from the IMF. So, we cannot blame or ridicule victimized developing countries and for the record unlike other Caribbean countries, Jamaica was always a friend of Guyana, as we were both placed on the bench and ostracized by other Caribbean countries. Now Guyana found oil, many are finally finding Georgetown on their map.

In reply to Slipfeeler
Listen bro for standing up for ourselves and other developing countries we have been cast into poverty.
All the economic mumbpmjumbo won’t change facts.
You want to see real debt - check the US and France for starters.
Who is demanding reforms and reserves from them.

This planet is unstable on steroids.

In reply to Chrissy

I am glad you mentioned France, only two African countries decided to stand up against French imperialism and plundering of their natural resources and already the French economy and government collapsed. I have been preaching for some time now that European and other western countries economies are dependent upon resources stolen, scammed or plundered from the African continent. Yet many are claiming that the continent is poor, even some of our own people have been deceived by proponents of neo-colonialism.

...........

Again, when you don't know...

The US national debt and its holders: the majority of the debt, approximately 75%, is held domestically.
This translates to roughly $27.2 trillion of the total $36.2 trillion debt as of May 2025.

That can be paid back in a decade....

In reply to sgtdjones

How, by printing money? the annual GDP is about US$2.9trilion,every penny would be paying debt.

In reply to camos

United States/Gross domestic product
29.18 trillion USD (2024)

It can be accomplished.

Realistically, it would require transformative economic policies, political unity (which is rare), and a blend of fiscal discipline with growth-oriented strategies. Still, exploring how it could be done highlights both the magnitude of the challenge and the possible tools at hand.

The most significant advantage the U.S. holds is the size and resilience of its economy. Rather than trying to cut spending in isolation, leveraging higher GDP growth can shift the debt-to-GDP ratio in a healthier direction. If policies fostered consistent growth above 3–4% annually—through investments in infrastructure, clean energy, AI and technology, and upgraded education systems—the country could increase tax revenues organically without raising rates aggressively. A larger economy makes existing debt easier to sustain and repay.

On the expenditure side, the federal budget is top-heavy with entitlements (Medicare, Medicaid, and Social Security), defence, and interest payments. Reducing debt in a decade would require addressing all three That might mean embracing reforms such as gradually raising eligibility ages for Social Security, introducing stricter means-testing, reforming healthcare delivery to lower costs, and modernizing the military budget to cut waste. Across-the-board efficiency gains could redirect hundreds of billions annually toward debt repayment.

Raising revenue without stifling growth is a delicate balance. Options include restructuring corporate taxes to close loopholes, modernizing the tax code for digital and global commerce, and considering targeted wealth taxes or higher capital gains for ultra-high earners. A modest national value-added tax (VAT), common in Europe, could yield substantial revenue if carefully designed to avoid burdening middle-income households. Over ten years, reforms like these could add trillions in revenue, dedicated specifically to debt reduction.

Currently, interest payments are one of the fastest-growing pieces of the federal budget. The government could refinance long-term debt at locked-in lower rates during stable conditions, reducing the growth of interest obligations. This is similar to refinancing a mortgage: the terms matter enormously over time. While rising interest rates limit this strategy, careful debt management could save hundreds of billions across a decade.

Beyond austerity, pairing public investment with private-sector innovation may accelerate growth and revenues. If government spending is refocused toward productivity-enhancing programs—5G networks, AI advancement, clean energy grids—the short-term spending could lead to long-term gains that help shrink the relative weight of the debt.

None of these technical solutions can work without a broader cultural shift. The U.S. political system often incentivizes short-term deficit spending rather than long-term debt reduction. To pay down the debt in ten years would require voters, lawmakers, and business leaders to embrace a generational project of discipline—something akin to the post-WWII mobilizations for reconstruction and growth.
In the end, the real goal may not need to be total elimination but to restore balance: bringing the debt-to-GDP ratio down to manageable levels, ensuring interest doesn’t swallow the budget, and leaving future generations on sounder footing. Whether the country has the unity and resolve to pursue such a path remains the harder, unanswered question. The difficulty, of course, is political will

Sarge

In reply to sgtdjones

Will Trump economic policy of demanding Tarrifs from various countries around the world negatively or positively impact current and future US economies?

In reply to Slipfeeler

Trump has no idea of what tariffs are.
What is a budget...or economy!!!

After 4 years of his tariff economy...the future for the US will be bleak...