Remittance inflows to Jamaica, ended in 2023 at US$3.37 billion, down two percent compared to total inflows of US$3.44 billion in 2022, and representing the third consecutive year that remittances exceed $3 billion and the fourth since it has come close to $3 billion, in 2020 in hitting a then record high of US$2.9 billion, well above the previous high of US$2.4 billion in 2019.
Remittance inflows for December 2023 declined by 3.6 percent to US$314 million, compared with US$326 million in December 2022. The data was compiled from data released by Bank of Jamaica
Jamaica pulled US$3.44B in remittances in 2023
Jamaica’s NIR jumps another $100m
Jamaica’s Net International Reserves (NIR) rose approximately US$113 in the first 10 days of 2024 data published by the country’s central bank, the Bank of Jamaica shows. The latest increase to the total of US$770 million that was added in 2023 to over US$870 million since the beginning of 2023.
The January inflows push the total at the close last year of US$4.76 billion to US$4.87 billion and just short of the US$5 billion mark. The build-up of the NIR comes against the background of the tight monetary policy pursued by the country’s central bank that has sucked local money from the financial market, by use of certificates of deposit (CDs). Over the past year, the Bank of Jamaica’s open market instruments mainly CDs have moved up by J$74 billion to $247 billion. Apart from funds being bought from the market, the NIR would also have grown by interest earned on the funds being held as reserves which could be around US$200 million per year based on current interest rates internationally.
Jamaica’s NIR jumps US$151M to record high
Jamaica’s net international reserves jumped US$150.6 million in December to end 2023 at a record US$4.75 billion, with the report indicating that the amount represents 34.8 weeks of imports, data released by Bank Jamaica is shows.
For the calendar year the NIR increased by US$770 million in 2023, that compares with a slight US$21 million fall in 2022 from 2021.
Soft remittance flows to end at $3.4B in 2023
Remittance inflows into Jamaica fell 1.9 percent in September to U.S$284.4 million and 1.2 percent for the year to date to just under $2.53 billion, this marks the 6th month of decline in remittances for the year to date, data from jamaica’s central bank shows.
With three months to go before the end of 2023, the market seems on track to be close to this US$3.44 billion of total inflows in 2022, with the absolute shortfall in remittances to date of just US$31 million adrift of the 2022 intake to September. The 1.9 percent fall in September is far less than the 5.9 percent decline that occurred in August and a 5.8 percent fall in April.
Worst fall for remittances
Remittance inflows to Jamaica in August slipped by 5.9 percent or US$18 million, the worst monthly decline for 2023, with total inflows of US$289, down from US$307 in August 2022, data out of the Bank of Jamaica show. The decline beats the 5.8 percent decline in April, with a slippage then of US$17 million.
So far, January, March and May are the only months with positive inflows compared with 2022.
In a year of primarily monthly declines, inflows are down by 1.1 percent or US$26 million to US$2.24 billion to August from US$2.267 million for the first eight months last year and now seem likely to come in just below the US$3.44 billion total inflows for 2022.
Remittances to Jamaica slip
Remittance inflows to Jamaica in July 2023 amount to US$303 million and represent a decline of 0.09 percent or US$2.7 million in comparison to July 2022 and is the 4th month of decline for the year to date, according to data released by the country’s Central Bank.
For the January to July 2023 period, remittance inflows to Jamaica amount to US$1,952 million, representing a decline of 0.4 percent compared to January to July 2022 when US$1,959 came into the country. Notwithstanding the decline for the year to date, the country is on track to match total inflows in 2022 of US$3.44 billion barring any major negative developments.
Remittances tracking 2022 inflows
Remittance inflows to Jamaica for the first half of 2023 are marginally behind intakes for 2022 with $1.64 billion being taken in, 0.3 percent less than for the same period in 2022, with June slipping 0.7 percent to $286 million below the $288 million collected for June last year.
The data for the half year suggests that the total of US$3.44 billion collected in 2022 is likely to be within reach this year if the current trend continues. In 2019 gross remittance inflows were $2.4 billion, which is a billion dollars less than was collected in 2022.
According to the Bank of Jamaica, the entity that compiles the data, remittances from the USA account for 69.8 percent of total flows, down from 70.7 percent in June 2022. Other source countries with a notable share are Canada at 10.5 percent, followed by the UK and the Cayman Islands at 10.0 percent and 5.8 percent, respectively.
Remittance inflows rise for Jamaica
Remittance inflows into Jamaica continue to track close to the 2022 flows, with a slight reduction year to date, but inflows for May 2023 rose 2.4 percent over last year after a US$7 million increase to US$290 million, data out of the country’s central bank show and that was well up on the $272 million pulled in during April this year.
Inflows for the year to date are down marginally by 0.2 percent to US$1.36 billion compared to the same period in 2022.
The continued strong inflows seem tied to the robust economic activity in the country’s primary source – the United States of America, which accounted for 70 percent of the inflows.
Jamaica’s remittance inflows drop
Remittance inflows to Jamaica for April 2023 fell by US$17 million or 5.8 percent to US$272 million, but inflows for the year to date are down marginally by 0.9 percent or US$4.4 million over the similar period in 2022 to US$1.07 billion.
April’s decline could be due to the Easter period falling earlier in April this year compared to that of 2022 that was in the middle of the month as such, some inflows may have taken place in March this year.
Remittances amount to 95 percent of tourism inflows in 2022 compared with 167 percent in 2021.