BOJ Books $6.9B Loss as Jamaican Dollar Strengthens Against US Dollar

The Bank of Jamaica (BOJ) reported a $6.9-billion loss in the first eight months of its financial year, mainly due to writedowns and currency movements.

The loss was driven by unrealised revaluation losses on foreign assets in the foreign reserve portfolio and unrealised foreign currency losses from the strengthening Jamaican dollar against the US dollar.

The bank's assets sit mostly in foreign currency, which reduces their value when translated back into local currency. The Jamaican dollar appreciated from $159.47 in January to $159.27 in August, resulting in a significant revaluation loss.

The BOJ stated that the losses are not cash losses and that it remains adequately capitalised to meet its price stability mandate.