Total remittance inflows for the March 2013 quarter were US$492.5 million, a decrease of US$12.3 million or 2.4 per cent compared to the corresponding quarter of the previous year. The inflows for the quarter were above the average for the previous five corresponding periods with the flows for January 2013 being the highest since 2010 with US$154 million, February inflows at $160 million was slightly under the US$167 received in 2012 and March was the worse month relative to 2012 as inflows fell by US$9.5 million to reach $178.4 million.
For the first quarter of 2013, net remittances were US$431.5 million, a decline of US$5.1 million or 1.2 per cent relative to the corresponding quarter of the previous year. The outturn for the quarter reflects the decrease in gross inflows, which was partially offset by a decline in outflows.
The decrease in total remittance inflows reflected a US$14.2 million or 3.3 per cent deterioration in inflows through Remittance Companies. The decrease in inflows was partly offset by a US$1.9 million or 2.6 per cent increase in flows via Other Remittances sub-category.
Last year Jamaica received the highest amount of remittances in its history with $2,037 billion up from $2,019 billion in 2011. Prior to this period remittances peaked in 2008 at US$2,021 billion just after the global recent started to take hold.
The fall in remittances in the first quarter of this year may be linked to the fall in the value for the Jamaican dollar and the scarcity of foreign exchange during the period. Examination of past behaviour show a strong co-relationship between inflows and exchange instability. When there is instability in the foreign exchange market some of the funds that would normally flow into the formal financial system are diverted to end users and therefore never get reported.
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