The Jamaican dollar continue to lose value against the US dollar but gained against the British pound and the Canadian dollar, on Tuesday. Authorized dealers purchased the equivalent of US$31,351,075 versus US$46,947,247 on Monday, and sold the equivalent of US$32,316,397 compared to US$40,489,087 on Monday.
In US dollar trading, dealers bought US$27,498,857 compared to US$42,320,091 on Monday. The buying rate for the US dollar put on 20 cents to $113.39 and US$29,712,322 was sold versus US$37,843,073 on Monday. The selling rate rose 7 cents to $113.89. The Canadian dollar buying rate rose 22 cents to $97.14 with dealers buying C$1,435,591 and selling C$785,344, at an average selling rate that erased 34 cents, to $99.04. The rate for buying the British Pound climbed 11 cents to $175.52, for the purchase of £1,434,718, while £547,510 was sold, the rate slipped 29 cents to $177.70. At the end of trading it took J$139.90 to purchase the Euro, 3 cents less than on Monday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$137.13, down by a cent.
Other currencies bought, amounted to the equivalent of US$401,331 while the equivalent of US$1,066,818, was sold.
Highs & Lows| The highest buying rate for the US dollar, closed 12 cents higher at $114.22, the lowest buying and the highest selling rates were unchanged at $93.52 and $119.84 respectively, but the lowest selling rate jumped $18.15 to $111.50. The highest buying rate for the Canadian dollar slipped 15 cents to end at $99.80. The lowest buying rate closed 24 cents lower, at $79.39. The highest selling rate fell 32 cents to $102.72 and the lowest selling rate dipped 35 cents to $95.65. The highest buying rate for the British Pound, gained 80 cents to $179. The lowest buying rate eased 25 cents to $143.34, the highest selling rate fell 43 cents to $184.79 and the lowest selling rate lost 30 cents to $172.70.
J$ gains vs Canadian & Pound – Tuesday
Record take – Jamaica’s remittances
Jamaica enjoyed record inflows of remittances, between January and July this year. The critically important flow of funds, reached $1.238 billion, representing an increase of US$47.6 million or 4 percent to be the highest inflows ever, according to the latest data on remittances, released by the country’s central bank.
The 2014 inflows, bettered the previous high of US$1.195 billion, in 2012 and the next highest, $1.192 billion in 2008. Net remittances for 2014 to-date, is US$1.109 billion, a growth of US$61 million or 5.8 percent relative to 2013. The out-turn for the period reflects an increase in gross inflows and a reduction in outflows.
Net remittances for July this year were US$160.5 million, an increase of US$10.9 million or 7.3 percent over the July 2013. The growth in net remittance inflows reflect an increase in gross remittance, which was partially offset by an expansion in remittance outflows.
Gross remittance inflows for the month were US$183.2 million, an increase of US$12.6 million or 7.4 percent compared to July 2013.
Jamaica’s remittances upward climb
Jamaica net remittances for May this year, grew US$10 million or 6 percent, to US$172 million, versus May 2013. The increase resulted from gross inflows growing by US$7 million to US$189 million, and a contraction in outflows.
Remittance Companies accounted for an increases of US$13 million in inflows, while Other Remittances saw a reduction of US$5.5 million, Bank of Jamaica stated in their report on remittances.
Net remittances for the year to May, amounts to US$795 million, representing growth of US$42 million or 5.6 percent, compared to 2013 period. The outturn for the review period, reflected an increase in gross inflows, and a reduction in outflows. For the period total remittance inflows were US$887 million, representing an increase of US$33 million or 3.8 percent.
Big improvement in balance of payments
There is a major improvement in Jamaica’s Current Account deficit for the March 2014 quarter, according to a report out of Bank of Jamaica. Lower imports partially offset by lower exports and improved service inflows led to an improvement of US$301 million the deficit of US$401 million in the March 2013 quarter, resulting in a deficit of US$101 million.
“The outturn for the 2014 first quarter is the second lowest current account deficit recorded since 2007” the country’s central bank states. The improvement in the Goods Account was due to a significant decline in imports which was partially offset by decline in exports. The decline in Imports of US$281 million was primarily driven by a US$172 million and a US$133 million decline in chemicals and mineral fuels imports, respectively. The decrease in exports was primarily attributable to a US$86 million and a US$31 million decrease in chemical and crude material exports, respectively, partially offset by an increase in the exports of manufactured goods of US$21 million.
An increase of US$31 million to US$270 million in the balance on the Services sub-account resulted primarily from improvements in transportation and travel services of US$33 million and US$18 million, respectively. The improvement in transportation resulted from reduced freight costs associated with the reduced imports, while the increases in travel receipts occurred due to a 3.3 in visitor arrivals.
Businesses more optimistic
Perception of in the most recent survey done in May of this year showed improvement in present business conditions by the business sector, compared to the previous survey done in April. The Bank of Jamaica commissioned survey, shows the index moving from 95.8 in April to 102.5 in May. The results are well off the 158 achieved in December 2011 or 135 reached in March 2013.
Expectations about future business conditions, however, were largely unchanged. Of note, both indices remained below the levels recorded in Fiscal year 2011/12, nonetheless, the perceptions of present and future business conditions have displayed a general upward trend since the April 2013 survey.