Jamaica records 39% surge in net remittance inflows in January 2021

…assisted by 17.3% decline in outflows

Jamaica recorded a big surge in net remittance inflows of US$224.4 million in January 2021, representing a US$62.9 million jump or 39.0 per cent increase relative to January 2020 based on the latest results of Jamaica’s Remittance Bulletin.

The Remittance Bulletin for January 2021, which was published last week by the Bank of Jamaica (BOJ), showed that the surge resulted from an increase in gross remittance inflows of 32.7 per cent or US$59.4 million complemented by a decline of 17.3 per cent or US$3.5 million in outflows.

The increase in gross remittance inflows stemmed from a 36.8 per cent hike in inflows via remittance companies as well as an increase in other remittances of 5.2 per cent for the month of January.

Net remittance inflows for the month of January totalled US$2.39 billion, up by US$589.0 million or 32.5 per cent more relative to the previous corresponding period. This improvement resulted from an increase of 27.0 per cent or US$548.3 million in total remittance inflows further aided by a fall off of 18.4 per cent or US$40.7 million in total remittance outflows.

The improvement in inflows is as a result of an increase of 31.3 per cent in remittance companies flows, while other remittances recorded an increase of 5.2 per cent.

SOURCES OF REMITTANCE INFLOWS

The largest source market of remittance flows to Jamaica for January 2021 was the USA. Remittances from the USA accounted for 69.8 per cent of total flows, up from 65.2 per cent recorded for January 2020. Other source countries which contributed a notable share of remittances for the month were the UK at 11.9 per cent followed by Canada and the Cayman Islands at 8.9 per cent and 5.6 per cent, respectively.

For the month of January 2021, Jamaica ‘s growth recorded for remittance inflows was 32.7 per cent, which is higher than that of Mexico, which registered a growth rate of 27.3 per cent. Guatemala and El Salvador also registered growth for the period with increases of roughly 8.7 per cent and 6.6 per cent, respectively.

NIR UP BY US$303.15 MILLION

The BOJ also reported US$303.15 million increase in the country’s net international reserves (NIR) for the one-month period February to March 2021.

The BOJ bulletin indicated that the NIR at the end of last month was US$3.31 billion coming from US$3.01 billion the month before in February.

The NIR now represents an improvement of two weeks in the estimated value in terms of the purchase goods and services imported into the country. It now stands at 38.71 weeks of imports coming from 36.44 weeks in February 2021.