Interest rate eases

Rates on the most recent Treasury Bills fell in the latest offering by the Government of Jamaica.

The rate for the January Treasury bill came out at 6.12 percent compared to 6.2522 percent in December. Investors on Wednesday, 15 January, applied to purchase $400 million 30 days Government of Jamaica Treasury Bills dated Friday, 17 January 2014. This resulted in the average yield of 6.11877 percent. However, yield went as high as 6.29577 percent. A total of $567,065,100 was submitted by applicants in their bid to obtain the instruments.

Related post | T-bill rates mixed at auction

BOJ ups FX market activity

During January there were some days of unusually high levels of selling of foreign exchange, which were well in excess of the amounts bought. These increased levels points to the country’s central bank having some input into the trades.

IC Insider made contact with Bank of Jamaica who provided the following response.

“Since the start of January 2014 to the 10th, BOJ’s purchase of foreign exchange from the market was a daily average of US$9.95 million. This compares with a daily average of US$8.74 million for December 2013. However, the average daily sales to the market (public sector entities) was US$11.12 million compared to US$2.0 million in December”.

BOP improvement for Q3 confirmed

Provisional data for the September 2013 quarter shows that there was a significant improvement in the current account deficit of Jamaica’s Balance of Payments. The outturn in the quarter reflected improvements on all sub-accounts. However, net private and official capital inflows were insufficient to finance the deficits on the current and capital accounts for the September 2013 quarter, which was funded by Bank of Jamaica from the net international reserves.

The central bank, in a release on the current account, stated that it “recorded a deficit of US$409 million for the period July to September 2013, an improvement of US$202 million over the corresponding period in 2012”. This outturn, the release stated, “reflected improvements on all sub-accounts but was primarily evident in a decline of US$146 million in the deficit on the merchandise trade sub-account, associated with a contraction of US$197 million in imports, there was a reduction of US$51.5 million in exports. The decline in imports mainly reflected reductions of US$132 million and US$73 million in expenditure on chemicals and mineral fuels, respectively. For exports, the fall was mainly due to lower earnings from chemicals, in particular, ethanol”.

For the quarter, there was a decline of US$8 million in the deficit on the income sub-account stemming mainly from a decrease of US$20 million in investment income outflows. The decline in investment income outflows was largely related to lower remittances of direct investment companies. With regard to the services sub-account, there was an increase of US$5 million in the surplus due principally to a decline in transportation charges as a result of the lower imports. The surplus on the current transfers sub-account increased by US$44 million reflecting growth of 6.2 per cent in gross remittance inflows.

Related post | Balance of payment improves

Remittances inch up

Add your HTML code here...

Remittances is an important source of foreign currency for Jamaica and many parts of the Caribbean basin countries. The data made public by Bank of Jamaica for the year to September reflects moderate growth.

Net remittances for January to September 2013 were US$1 349 million, which represented a growth of US$23 million or 1.7 per cent relative to 2012. The outturn reflects an increase in gross remittance inflows and a contraction in outflows. Total remittance inflows were US$1,532 million, an increase of US$7 million.

US$Sheet280x150pxWhat the report has failed to indicate that the lower than normal growth is not necessarily an indication of worsening economic conditions in the source countries. In fact North America, from which the bulk of flows emanate, has been showing growth in the economy.

Limited studies done by the Investors Choice going back to 2008-09 indicates a strong correlation between exchange instability of the Jamaican dollar with a reduction in inflows. It should come as no surprise that some funds that would normally flow into the formal system have in fact been diverted thus reflecting what may be considered lower inflows. In the first 4 months of 2013 when there was scarcity of foreign exchange in the system, remittances actually declined compared with 2012, while in 2012 for the same period, remittance increased during a period when foreign exchange was easily available.

Related posts | Remittances keeps growing | Remittances up, but barely

Business confidence drops 24%

Confidence level, which was at its highest for 2013 in September at 87.4 versus a low of 47.5 in April, dropped sharply in October to 66.5, a 24 percent fall.

Persons in the business sector were asked, “In general, do you think business conditions are better or worse than they were a year ago in Jamaica?” The survey was carried out on behalf of Bank of Jamaica.

Perceptions about future business conditions also fell but not as badly as for current conditions. The responses in September saw the highest reading for the year at 116.6 but it fell sharply to 98.6 in October a 15.5 percent fall. The findings are in response to the question “Do you think that in a year from now business conditions will get better or get worse than they are at present?” Although the survey did not give reasons for the decline, it seems to coincide with the falling rate of exchange of the local dollar and high inflation as well as the view that there is likely to be a 6 percent fall in the value of the Jamaican dollar a year from October this year.

The Statistical Institute of Jamaica (STATIN) undertakes surveys of businesses on behalf of the Bank of Jamaica to ascertain the expectations of economic agents about variables which are likely to have an impact on inflation in the near-term. In this regard, the survey captures the perception of Chief Executive Officers, Managing Directors and Financial Controllers about the future movement of prices, current and future business conditions and the expected rate of increase in wages/salaries. The most recent survey was conducted in October 2013 and had 300 respondents.

Related posts | Businesses see J$ at $110 late 2014 | Inflation high, lower than September

Remittances keeps growing

Net remittances for August this year increased by US$7.6 million or 5.2 percent to US$155.5 million relative to August 2012. The growth reflected an increase in gross remittance inflows as outflows remained flat at US$22.3 million.

Gross remittance inflows for the month were US$178 million, an increase of US$7.6 million or 4.5 percent versus the same month last year. Inflows were above the average of US$164 million for the previous five corresponding periods. The rise in total remittance inflows reflected an increase of US$8.3 million in inflows through Remittance Companies and a decrease of US$0.7 million from other inflows.

Image courtesy of Marcus/FreeDigitalPhotos.net

Image courtesy of Marcus/FreeDigitalPhotos.net

Net remittances for January to August 2013 were US$1.2 billion, which represented a growth of US$18.8 million or 1.6 percent relative to 2012. The out-turn for the 8 months period reflects an increase in gross remittance inflows and a contraction outflows.

For the year to August, total remittance inflows were US$1.37 billion, an increase of US$2.8 million and was were marginally above the corresponding pre-crisis (2008) out-turn.

The increase in total remittance inflows reflected a US$10.0 million or 5.1 percent growth in inflows through Other Remittances, which was partly offset by a US$7.3 million or 0.6 percent reduction in flows through the Remittances Companies.

Image courtesy of Marcus/FreeDigitalPhotos.net

Balance of payment improves

Jamaica’s central bank, Bank of Jamaica, is reporting that the country’s Current Account deficit for January to June 2013 improved by US$268 million to US$519 million compared to the corresponding period in 2012. The outturn for the review period represents a continuation of the improvement in this indicator since 2011 the report said. The enhanced outturn for the six months period to June emanated from all sub-accounts, mainly Goods and Primary Income (formerly Goods & Services) which improved by US$141 million and US$50 million respectively.

Change in presentation | The Balance of Payments (BOP) has been modified from what used to be published in the past. The major change in presenting the report is that the Capital Account will no longer be grouped with the Financial Account, but with the Current Account instead. The overall balance from the Current and the Capital account is now referred to as Net Lending or Borrowing. Also, the use of debits and credits for the Financial Account is replaced by Net Acquisition of Financial Assets and the Net Incurrence of Liabilities. There is also introduction of categories of Primary and Secondary Income, which are conceptually consistent with the System of National Accounts (SNA). Primary Income encompasses returns that accrue to institutional units for their contribution to the production process or for the provision of financial assets and renting of natural resources, while Secondary Income represents Current Transfers between residents and non-residents.

Oil-pricepump150x150Goods producing | For the Goods sub-account, the deficit improved by US$1401 million to US$1.899 billion, versus the corresponding period in 2012. Imports of Goods fell by US$133 million to US$2.779 billion, primarily driven by a US$218 million decrease in Mineral Fuel imports and partially offset by a US$132 million increase in Chemical Imports. Imports of food decreased by US$37.0 million in the period.

Goods Exported increased by US$7.5 million to US$880 million, primarily as a result of a US$66 million increase in Chemical Exports, particularly ethanol.

The balance on the Services sub-account increased by US$50 million to US$453 million for the review period. This resulted primarily from an improvement of US$48 million in the net inflows to the insurance and pension services accounts.

The Primary Income sub-account improved by US$50 million during the review period. This emanated primarily from a US$83 million increase in net investment income flows. Relative to the corresponding period in 2012, the balance on the Secondary Income sub-account improved by US$27 million to US$1 054.1 million. The improvement mainly resulted from a US$18 million increase in the net flows to Financial Corporations, Nonfinancial Corporations, Households, and Non-Profit Institutions Serving Households.

The deficit on the Capital Account improved by US$6.4 million to US$7.7 million for the review period. This outturn together with the balance on the Current Account yielded a net borrowing position of US$527 million, an improvement of US$273.9 million relative to the January-June 2012 period.

The Financial Account recorded a net borrowing position of US$197.4 million, an improvement of US$278.6 million compared to the corresponding period of 2012. The largest contributing subcomponent of the net borrowing balance was Other Investments, which had a net borrowing balance of US$181.2 million. This was primarily due to a decline in the net acquisition of loan assets by US$369 million, coupled with an increase of US$253.8 million in the net incurrence of loan liabilities.

Flows from official and private sources were insufficient to finance the net borrowing balance from the Current and Capital accounts; consequently, the NIR declined by US$100.0 million for the review period.

Related posts | Non-Traditional exports up | NIR up in September

Image courtesy of arztsamui/FreeDigitalPhotos.net

Businesses see J$ at $110 late 2014

According to a survey undertaken by Bank of Jamaica in September, senior officers in the business sector anticipate an upturn in the pace of depreciation of the Jamaican dollar for the 3-month, 6-month and 12-month periods beyond the survey date.

This was relative to the August 2013 survey, which showed a lower expected pace of depreciation over all the time horizons. In the September 2013 survey, the exchange rate was expected to depreciate by 1.8 percent, 3.0 percent and 4.7 per cent for the 3-month, 6-month and 12- month horizons, respectively.

By comparison, the August survey had expected depreciation of 1.5 per cent, 2.6 percent and 4.3 percent over the respective horizons.

USD_Clock150x150If the expectations of the interviewees were to materialise, then the exchange rate would be around J$110 to the US dollar but then that is not quite consistent in the September 2013 survey where the respondents’ expectation of inflation 12-months ahead increased to 10.4 percent in the September 2013 survey, relative to 10.3 per cent in the August 2013 survey. This inflation expectation would suggest an exchange rate adjustment closer to 7 or 8 percent.

The Statistical Institute of Jamaica (STATIN) undertakes surveys of businesses on behalf of the Bank of Jamaica to ascertain the expectations about variables which are likely to have an impact on inflation in the near-term. In this regard, the survey captures the perception of Chief Executive Officers, Managing Directors and Financial Controllers about the future movement of prices, current and future business conditions and the expected rate of increase in wages/salaries.

Govt set to wipe out deficit

The budget presented by the Government of Jamaica to the nation in April did not paint a full picture of what was on the cards. That is, the full wiping out of the fiscal deficit in one year and laying the foundation for a reduction in the heavy debt to GDP load the country has borne for decades. The government is well on target to do this based on the performance to September with a deficit of only $6.6 billion and the heavy inflow of taxes between January and March 2014.

After faltering in August partially due to the last day’s collections not counted in the August fiscal numbers, revenues in September shot past the forecast to land the overall year to date collections right on target but for a half a billion dollar shortfall, which was more than made up for by a near $11 billion savings on the expenditure side. The fiscal deficit is well ahead of forecast at just $6.6 billion versus a target at this stage of $17 billion.

Jamaica_coat_of_arms_280X150Although revenues as a whole are on track, there are areas of concern where intake is less than planned by a fair degree. Capital and non-tax revenues are up by $5 billion year to date which helped to offset fall off in other areas. Also of note, travel tax, which is up by 69 percent due what the Ministry says is past due amounts that being collected, but this is not sustainable at the same pace going forward once the arrears are cleared.

Negative inflows | International trade is down year to date by $2.6 billion; this would have been far worse but for the positive collections for travel tax. Production and consumption taxes have not performed badly although down by $388 million from a forecast of $58.5 billion as education tax is down versus budget by 8 percent to $8.6 billion. Betting and gaming tax is down 38 percent at $1.13 billion. In the area of income taxes, PAYE is down by 6 percent or $2 billion to $30.4 billion, corporate taxes are up by $800 million as tax on dividends fell by $765 million or 57 percent against forecast. As government paid out less interest on the debt, the collection for tax on interest income fell.

Less debt | Government borrowed nearly $10 billion less than budgeted and cut the interest paid for servicing the monstrous debt by $5.6 billion. Payments for other housekeeping expenses other than wages declined by $2.6 billion, in addition $1.7 billion was spent on capital items during the six months period.

Related posts | August curse hits Taxes | July surplus as Govt income jumps

FX: BOJs intervention pushes rate down

Wednesday, 23 October 2013 | Bank of Jamaica’s hands were visible in the forex market on Wednesday with dealers purchasing the equivalent of US$45,935,624 and sold $43,279,962. IC Insider’s source confirmed the central bank’s intervention which led to a slight appreciation in the value for the Jamaican dollar against the US dollar.

Dealers purchased US$41,532,414 at a rate that was down 3 cents to $104.48 and sold US$38,099,208 down 5 cents to $104.94; Canadian dollars for an increase of 87 cents at $100.87 for C$2,222,211 and sold C$3,773,128 at $102.75 down 51 cents and £1,328,476.77at $167.37 an increase of 23 cents and sold £770,750.73 for 99 cents less than on Tuesday at $170.33.

FX_TRADE+Currency+Oct23Highs & lows | The highest buying rate for the US dollar went down 25 cents to $106.50, while the lowest buying rate remained unchanged at $85.17 and the highest selling rate for the US dollar remained unchanged at $109.14 but the lowest went up 16 cents to $85.17.

The highest buying rate for the Canadian dollar went down $1.50 to $103.00, while the lowest buying rate for remained unchanged at $81.26 and the highest selling rate went up 25 cents to $105.00 as the lowest remained at $97.90.

FX_TRADE+HighLow+Oct23The highest buying rate for the British Pound went down 70 cents to $171.60, the lowest buying rate went up 66 cents to $135.95. The highest selling rate went down 92 cents to $174.35 while the lowest remained unchanged 163.80.

Обновили на порносайте pornobolt.tv порно страничку о том как парень выебал пизду мачехи, которая устала от своего муженька Комиксы, Манга читать онлайн на Русском языке

Brand new Partner with our doctors to make you happy is Omtogel RTP

Play Pin-up aviator Slots and e-Diet in Polska.