J$111.55 to US$, inflows exceed outflows

FX buys 13-6-14 picHILO 13-6-14The local dollar lost value yet again on Friday even as inflows far outnumbered outflows with $39.8 million bought to only $25.3 million sold. The Jamaican dollar slipped 5 cents against the US dollar to push the selling rate to $111.55, the selling rate for the Canadian Dollar gained 6 cents to close at $102.45 and the Pound sterling closed at $188.37 with an increase of 88 cents.
A total of the equivalent of only US$39,803,642 entered the market with the equivalent of S$25,324,698 leaving. On Thursday dealers bought the equivalent of US$23,283,938 and they sold the equivalent of US$26,565,251 sold.
In US dollar trading, dealers bought US$33,708,870 compared to US$17,549,276 on Thursday as the buying rate for the US dollar rose 18 cents to $111.03 and sold US$23,139,314 versus US$21,696,188 on Thursday with the rate closing up 5 cents to $111.55.
The Canadian dollar buying rate fell $1.21 to end at $100.26 with dealers buying C$807,533 and selling C$432,370 with the rate rising 6 cents to end at $102.45.
The Pound closed at $186.47, for the purchase of £3,118,427 as the rate gained 24 cents, while £963,002 was sold, with the rate climbing 88 cents to $188.37. Other currencies bought, amounted to the equivalent of only US$128,416 while selling accounted for the equivalent of just $162,143.
Highs & Lows| The highest rate gained 8 cents to $111.78 but the lowest buying rate along with the highest selling for the US dollar remained unchanged at $90.60 and $116.09 respectively. The lowest buying rate was up 40 cents to $108.50.
The highest buying rate for the Canadian dollar fell 20 cents to $102.60, the lowest buying rate climbed 33 cents to $81.09, the highest selling rate was up 5 cents to $104.59 and lowest selling rate was up by a mere 5 cents to $97.75.
The highest buying rate for the Pound gained $1.25 to $189.10 while the lowest buying rate rose 42 cents to $149.82. The highest selling rate rose by 54 cents to $193.14 and the lowest selling rate was up 50 cents to $180.50.

Chile 3, Aussie 1

world cup 2014 ballChile completed an entertaining world cup football match with a 3 to 1 victory over Australia seconds ago. Chile is now second in the group behind Holland who clobbered Spain 5 goals to 1.

Holland demolishes Spain 5-1

world cup 2014 ballThe Spanish team came in as favourites for their world cup match up with the Dutchmen, but the Dutch have demolished the last world cup winner in a second half display that few people saw. With 10 minutes of the second haft left to be played, Holland has torn up the scrip and surged ahead 5 goals to 1 and now seem very unlikely to lose this match.

Mexico 1 Cameroon nil

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Mexico won their first encounter with the African nation Cameroon by 1 goal to nil in poring rain to be the second leader in the group, with Brazil leading having scored more goals for a better net score.

40 minutes world cup loss damages JPS image

As if its public image was not already low JPS did more damage to it today with a massive power outage at the start of the popular world cup series and amidst a near 100 degree hot a muggy temperature. Football enthusiasts who rely on television for the viewership of their sports were deprived of catching the start of the world cup match between Mexico and Cameroon which started at 11 Jamaica time. The outage could hardly have been at a worse time for them, especially at a time when they have mouthed the thought of getting the permission to supply the additional amount of new electrical power to the system.
While government is trying to get third parties to set up a new power plant to feed into the JPS grid, JPS would not have done themselves much favour if what would appear to be the logical decision of allowing them to add the needed supply to the grid. What has not been said in the saga of getting cheaper power to consumers of electricity is, with JPS already having the overheads for supplying the current and near term needs, switching to a new supplier of power generation will not provide the best cost option as two sets of overhead cost will have to be borne by consumers, plus the profit margin of a separate supplier as well as additional mark up the JPS will effect for transmitting the supply. So consumers will be hit with double cost and double profits.
But JPS should have been performing better than they have. But clearly government ministers have not been thinking properly being 20 percent owners in JPS. Have anyone thought about the effect that by passing JPS for power generation will have on the 20 percent stake owned by taxpayers through the government, if that been considered seriously no one is telling the country?
While the government is focusing on new supply to deliver cheaper power,

Brazil 3, Croatia 1

Brazil won the opening and what turned out to be an entertaining 2014 world cup football match but the country’s historical defense weakness showing again. They, however, scored 2 neat goals out of the three. Pretty good effort from Croatia, they may recover. This year’s world cup month long football tournament is be held in Brazil and is expected to generate over $1 billion surplus for FIFA the world’s football governing body.

Jamaica’s inflation falls

bOJ building #4

A fall in the price of electricity lead to a 0.3 percent drop in the inflation rate for April this year, according to data released by the Statistical Institute of Jamaica, on the Consumer Price Index. Statin says “this was the lowest inflation rate recorded since July 2012, when the rate fell by 0.3 percent”.

This decrease was as a result of a decline in electricity rate, represented by a fall of 7.5 percent in the index for the group ‘Electricity, Gas and Other Fuels’ but was moderated by the 4.0 percent increase in the index for the group ‘Water Supply and Miscellaneous Services Related to the Dwelling’ as a result of a the rise in water and sewage rates for the period. The division, ‘Food and Non-Alcoholic Beverages’ recorded an increase of 0.3 percent.

The calendar year-to-date inflation rate for April 2014 was 1.4 percent, the point-to-point 7.6 percent.  The other divisions that recorded increases in the All Jamaica ‘All Divisions’ index were: ‘Alcoholic Beverages and Tobacco’ 0.2 percent, ‘Clothing and Footwear’ 0.1 percent, ‘Furnishings, Household Equipment and Routine Household Maintenance’ 0.3 percent, ‘Health’ 0.5 percent, ‘Transport’ 0.4 percent, ‘Recreation and Culture’ 0.3 percent, ‘Restaurants and Accommodation Services’ 0.4 percent, and ‘Miscellaneous Goods and Services’ 0.2 percent.

GOJ revenues up in April

Image courtesy of cooldesign/FreeDigitalPhotos.net

Image courtesy of cooldesign/FreeDigitalPhotos.net

 The GOJ enjoyed slightly higher revenues in the first month of the fiscal year with total inflows of $24.7 billion versus $24.4 billion budgeted.
The increase came from non-tax revenues. Expenditure was slightly less than planned and came in at $33.9 billion only $31 million less than budget, resulting in an reduced fiscal deficit than originally projected coming in at $9.16 billion compared to $9.53 billion budgeted.
The government however, borrowed $1.4 billion less that they projected to borrow in the month.

Proven closes FGFS deal at $2B

proven_logo150x150Proven paid US$18.6 million or J$2.05 billion for FGFS a note in the company’s latest audited report stated. In April Grace Kennedy stated in a release to the stock exchange that the transaction is valued at $3.05 billion but excludes the seat on the Jamaican Stock exchange which the Grace group will keep.
Grace Kennedy advised the stock exchange of the finalization of divestment of the shares held by subsidiary, First Global Holdings Limited in First Global Financial Services Limited (FGFS) to Proven Investments Limited effective May 30, 2014. Proven has changed of name of the company to PWL Transition Ltd. Proven have also indicated to the public that the name has been changed to and closed the former FGFS offices at Duke Street in Kingston, Ward Street in Mandeville and Bogue in Montego Bay relocating the operations to existing Proven offices in those locations.
Proven made profit of US$3.78 million for the year to March 2014 compared with US$4.2 million in 2013 from lower revenues of US$13.2 versus US$14.4 million.

Remittance growth continues

FX_USPoundNet remittances rose US$11 million or 7.8 percent in February this year over the similar period in 2013, ending at US$152 million. The growth in net remittance inflows reflected an increase in inflows and a contraction of outflows.
Gross inflows for the month amounted to US$168 million, an increase of US$8 million or 5.1 percent versus the corresponding month of 2013. The rise in total remittance inflows emanated from an increase of US$11 million in inflows through Remittance Companies. The increase in these flows was partly offset by a reduction of US$2.4 million in inflows from Other Remittances.
Net remittances for the two months to February this year was US$290 million, an increase of US$19 million or 7.0 per cent relative to 2013 and emanates from an increase in gross remittance inflows and a contraction in outflows.
For the review period, total remittance inflows amounted to US$327 million, an increase of US$12 million or 3.9 percent.