By Ayanna Kirton, Staff ReporterTHE BANK of Jamaica's (BoJ) total foreign assets have increased by 32 per cent (or J$32.3 billion) while local assets have increased by 16 per cent (or J$16.5 billion) according to the Central Bank's balance sheet for the period September 10, 2003 to September 8, 2004.
The Bank of Jamaica attributes the increase in local assets to a slight increase in the entire range of Jamaica dollar investments held by the Central Bank. Increases in total foreign assets were the product of the stability of the exchange rate, which has experienced very little movement since the start of the year, as well as external financing obtained by the Government.
ABILITY
Deputy Governor of the Bank of Jamaica, Colin Bullock, explained that the Central Bank's ability to accommodate the purchase of large blocks of foreign exchange also continues to attract private entities. These private sector companies, in need of Jamaican dollar liquidity to fulfil their local obligations, tend to purchase Jamaican dollars from the Bank, thus boosting its total foreign assets.
According to the deputy governor, the country's current accounts reflect major improvements as the current account deficit has contracted sharply when compared with previous periods. He attributed these improvements to increases in foreign direct investment and merchandise exports, particularly alumina and non-traditional exports.
