Remittances up in January

Jamaica continues to benefit from increased remittance flows as the countries that were negatively affected by the down turn in their economies in 2008 continue to mend.

Net remittances for January 2014 were US$138 million, an increase of US$8 million or 6.2 percent relative to the corresponding period of 2013. The growth in net remittance inflows reflect an increase in gross remittance inflows and a contraction in outflows.

Gross remittance inflows amounted to US$158 million, an increase of US$4 million or 2.7 percent compared to January last year. The rise in total remittance inflows emanated from an increase of US$6 million in inflows through Remittance Companies and partly offset by a reduction of US$1.4 million in inflows from Other Remittances.

The January increase follows a record year in which Jamaica topped $2B in remittance inflows.

Related posts | 2013 Remittance inflows top $2B | Remittance inflows continues up

2013 Remittance inflows top $2B

Total remittance inflows into Jamaica for 2013 hit a record of US$2.07 billion, US$23 million more than the amount received in 2012, which was the previous record year at US$2.043 billion according to data from the Bank of Jamaica. Net remittances for January to December 2013 were US$1.82 billion, an increase of US$49 million compared to 2012.

The out-turn for December reflected an increase in gross remittance inflows and a contraction in outflows with net remittances for the month reaching US$176 million, an increase of US$2.2 million over the similar period of 2012. Gross remittance inflows for the month were US$195 million, a decrease of US$1.7 million relative to December 2012.

Image courtesy of Boaz Yiftach/FreeDigitalPhotos.net

Image courtesy of Boaz Yiftach/FreeDigitalPhotos.net

For the fourth quarter of 2013, net remittances were US$476 million, an increase of US$27 million or 6.0 per cent relative to the corresponding quarter of the previous year resulting from an increase in gross remittance inflows and a contraction in remittance outflows.

Total remittance inflows for the December quarter were US$533 million, representing an increase of US$16 million or 3.0 per cent relative to the corresponding quarter of the previous year.

Related posts | Remittance inflows continues up | October remittances up

Remittance inflows continues up

Remittance inflows for November last year were US$168 million, an increase of US$10 million or 6.3 per cent compared to the corresponding month in 2012. The rise in total remittance inflows reflected an increase of US$8.0 million in inflows through Remittance Companies and an increase of US$2 million in inflows by other sources.

Net remittances flows were US$149.4 million for November 2013, an increase of US$13.5 million or 9.9 per cent versus the corresponding month in of 2012. The growth in net remittance inflows reflected an increase in gross remittance inflows and a contraction in outflows.

Total remittance inflows from January to November 2013 were US$1.87 billion, an increase of US$24 million over the flows for the similar period in 2012.

The increase in total remittance inflows reflect an increase of US$15 million in inflows through Other Remittances and an increase of US$9 million in inflows through Remittances Companies.

Net remittances for January to November 2013 were US$1.65 billion representing an increase of US$47 million or 2.9 per cent relative to 2012. The outturn for the review period reflected an increase in gross remittance inflows and a contraction in outflows.

Related posts | October remittances up

October remittances up

Net remittances into Jamaica grew by 7.8 percent for October last year to US$152 million, an increase of US$11 million over the same month of 2012 while gross inflows grew by 4.5 per cent or US$7.4 million to US$171 million. Remittance outflows actually declined for the period.

The rise in total remittance inflows reflected an increase of US$8 million in inflows through Remittance Companies and a decrease of US$0.5 million in inflows of Other Remittances.

Net remittances for January to October 2013 were US$1.5 billion, a growth of US$34 million or 2.3 per cent over 2012. The outturn for the review period reflects an increase in gross remittance inflows and a contraction in outflows.

FX_USPoundFor the review period, total remittance inflows were US$1.7 billion, an increase of US$14 million or 0.8 per cent. The increase in total remittance inflows reflected an increase of US$13 million in inflows through Other Remittances and an increase of US$0.7 million in inflows via Remittances Companies.

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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

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

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

Remittances dip in June

Data made available by Jamaica’s central bank shows net remittances falling US$7.3 million in June 2013 or 4.8 per cent relative to the corresponding period of 2012 as net flows amounted to US$145.8 million.

Gross remittance inflows for the month were US$166.0 million, a decrease of US$9.1 million or 5.2 per cent relative to the corresponding month of the previous year. The fall in total remittance inflows reflected a decrease of US$8.0 million in inflows through Remittance Companies and a decrease of US$1.2 million in inflows via Other Remittances.

USdollarStacks280x150Net remittances for January to June 2013 were US$899.3 million, a growth of US$8.4 million relative to the corresponding period of 2012. The out-turn for the review period reflected a reduction in outflows, which were partly offset by inflows. For the period to June, 2013, total remittance inflows were US$1,020 million, a decrease of US$6.5 million.

Sharp increase in May Remittances

For May 2013, net remittances were US$162.0 million, an increase of US$19.6 million or 13.7 per cent relative to the corresponding period of 2012. This resulted from an increase in gross remittance inflows and a contraction in outflows as the foreign exchange market settled after the signing of the agreement with the IMF agreement by the government.

Gross remittance inflows for the month were US$181.5 million, an increase of US$14.9 million or 8.9 per cent relative to the corresponding month of the previous year and the highest monthly inflow for 2013. The inflows are the highest since 2009 when inflows fell to US$142 million and last year’s $166.7 million.  The rise in total remittance inflows emanated from increases of US$8.0 million and US$6.9 million in both the Remittance Companies and Other Remittances subcategories, respectively.

Total remittance outflows for the review month decreased by US$4.7 million to US$19.6 million. The combined impact of inflows and outflows resulted in net remittance flows increasing for May 2013.

ForEx280X150Historical data show a link with exchange market instability and remittance flows. In 2009, other remittances started to fall from October 2008 when they fell US$10 million to US$28 million; in November it fell further to US$18.3 million; moved up to $27.1 in December while in January it fell to US$25.6 million; US$19 million in February and US$19.4 million in March. The average monthly inflows for the first quarter of 2008 was $40 million. The decline seems to coincide with the sharp fall in the value of the local dollar and scarcity of US dollars in the economy as investors, who received foreign currency, would most likely have held onto them than surrender them into the system. The same situation appears to have occurred since 2012 into the early months of this year.

January to May 2013 | Net remittances for January to May 2013 were US$753.5 million, representing a growth of US$15.6 million or 2.1 per cent relative to 2012. The out-turn for the review period reflected an increase in gross inflows, helped by a reduction in outflows. For the period, total inflows were US$854.2 million, representing a minor increase of US$2.6 million.

Remittance inflows for the year to-date were above the corresponding pre-crisis (2008) out-turn. However, the growth rate in remittance inflows has seen a deceleration since 2010, most likely due to Jamaicans speculating against the local currency as the country went through a prolonged period without an IMF agreement and a declining net international reserves and overvaluation of the Jamaican dollar as a result of years of local inflation exceeding by far that of our major trading partners.

The increase in total remittance inflows reflected a US$13.5 million or 10.8 per cent improvement in inflows through Other Remittances, together with a US$10.9 million or 1.5 per cent reduction in flows from Remittance Companies sub-category. For the review period, the positive growth in net remittances inflows was also due to a contraction of US$13.0 million in outflows.

Related posts | April remittances back on track | Remittance inflows dip

Image courtesy of Boaz Yiftach/FreeDigitalPhotos.net

April remittances back on track

Gross remittance inflows for April 2013 were US$180.1 million, the same as a year earlier and reflects an improvement on a year over year comparison with March of this year when inflows were off from March 2012 by $9.5 million. Inflows for the review period reflected a US$4.6 million increase in inflows through Other Remittances which was offset by reduced flows of a similar value through Remittance Companies.

Total remittance outflows for the April this year decreased by US$1.2 million to US$20.1 million. The combined impact of inflows and outflows resulted in net remittance flows increasing for April.

For January to April, total remittance inflows amounted to US$672.7 million, a decrease of US$12.3 million or 1.8 percent. The decrease amounts to US$18.8 million or 3.2 per cent deterioration in inflows through Remittance Companies. The decrease in inflows was partly offset by a US$6.6 million or 6.5 per cent increase in flows via Other Remittances.

Net remittances for 2013 to April were US$591.5 million, a decline of US$3.9 million or 0.7 per cent relative to 2012.

RemittancesJan-April2013

See our previous report on Remittance inflows dip, published 26th June 2013.