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The depreciation of the Jamaican dollar will threaten the country's growth prospects.

Jamaica’s circulated currency to jump 14% during festive season

The depreciation of the Jamaican dollar will threaten the country's growth prospects.

Roughly two and a half billion dollars more will be in circulation this month as the Bank of Jamaica (BOJ) predicts an increase in spending for the festive season.

The Bank of Jamaica in downtown Kingston, Jamaica (Photo: Jamaica Observer)

The central bank on Tuesday said it has raised its circulated currency total to $152.4 billion, $2.4 billion more than in November. It said the 14.1 per cent increase reflects heightened activities associated with the Christmas season.

Net currency issued between December 1 and 13 was $1.2 billion, a billion dollars lower than the same period last year.

“When the forecasted change in the general level of consumer prices is taken into account, the projected real growth in currency for the year is 8.3 per cent, which is much lower than the real growth of 17.5 per cent for the previous year,” said the BOJ.

The forecast is consistent with the five-year average growth of 17.6 per cent for month.

Roughly $131.2 billion in currency was in the hands of the public and the vaults of financial institutions as at December 13.