KINGSTON, Jamaica – Jamaica’s monetary authority has reported that a substantial late-month spike in cash requirements enabled the nation’s currency expansion to align with official projections for December 2025, according to finalized data released Monday. This robust finish effectively counterbalanced the unexpectedly subdued pattern documented in preliminary assessments just days prior.
The Bank of Jamaica (BOJ) disclosed distributing a net total of J$13.1 billion to financial institutions during the final five business days of the month, derived from J$14.1 billion in new issuances minus J$0.9 billion in redemptions. This vigorous end-of-period activity propelled the overall currency inventory growth to J$21.7 billion, representing a 7.2 percent monthly increase.
This conclusive performance closely matched the central bank’s early-December forecast of 7 percent growth, demonstrating a notable recovery from the mid-month assessment on December 24 that indicated merely 2.9 percent expansion through the first 22 days. Despite this recovery, the monthly growth rate remained below the 8 percent increase recorded in December 2024.
Jamaica’s circulating currency reached J$322.3 billion by year-end, reflecting a substantial 12.7 percent nominal annual growth that dramatically exceeded the previous year’s 3.1 percent expansion. When adjusted for inflation, the real value of currency holdings surged by an estimated 7.1 percent – a remarkable turnaround from the 1.8 percent real decline witnessed twelve months earlier.
Monetary officials identified multiple drivers behind this accelerated annual growth, including precautionary cash holdings following Hurricane Melissa, enhanced remittance flows, elevated inflation rates, and economic recuperation from Hurricane Beryl’s impact in July 2024.
The BOJ expects the majority of additional currency supplied for seasonal demand to return to financial institutions during January. Historical patterns indicate that approximately 68.8 percent of December’s net currency issuance typically gets redeemed in the subsequent month over the past five years.
The central bank administers daily currency movements based on commercial bank requirements, which themselves respond to heightened withdrawal patterns from both individual and commercial clients during peak expenditure periods. Jamaica’s currency in circulation encompasses all banknotes and coins held by the public plus vault reserves maintained by commercial banks.