Finance Minister says strong NIR will buffer Jamaica against volatile oil prices

Jamaica’s Finance Minister Fayval Williams said the country’s Net International Reserves (NIR) of more than US$6 billion will act as a buffer against unstable oil prices due to the ongoing conflict in the Middle East.

“I want to say to the Jamaican people and businesses, you can continue to have faith in this Government. We have built the largest Net International Reserves of any government. Madam Speaker, the NIR stands strong at US$6,839,000,000 as of March 5, 2026,” Williams said during the 2026/2027 Budget Debate in Parliament on Tuesday.

She highlighted that Jamaica has surpassed international standards and has three times the recommended safety net.

“If we take the gross [rather than the net reserve] and measure it in ‘weeks of goods and services imports’, that would be 36 weeks, based on the official figures the Bank of Jamaica published. The global benchmark is 12 weeks, meaning it is considered adequate for a country if its gross reserves cover 12 weeks of goods and services imports. Jamaica has 36 weeks. Our NIR is strong!” she further stated.

Global oil prices remain highly volatile, retreating to around US$85–$90 per barrel for major benchmarks after surging past US$100 on Monday due to disruptions to global oil production caused by the US-Israeli conflict in Iran.

The Middle East produces more than 30 per cent of the world’s crude oil, making it the world’s leading oil-producing region.

Additionally, the world’s busiest oil shipping lane, the Strait of Hormuz, through which about 20 per cent of global oil and gas passes, has been disrupted.

Jamaica relies on imports for its crude and finished petroleum products, with the state-owned oil refinery, Petrojam, managing refining at its Kingston facility.

Williams also defended the Holness administration’s fiscal discipline in growing the NIR.

“We have worked, Madam Speaker, to ensure the Net International Reserves remain strong for moments like these because we know that the true purpose of the NIR is to protect Jamaica against the vagaries of the external world. One such example is the significant, sudden movement in oil prices. Madam Speaker, here is the perfect example of why we should not party with the rent money. We should not party with the NIR, Madam Speaker. We must keep it strong. It is one of our important buffers,” she said.

- Sashana Small

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