Jamaicans consistent in sending millions abroad monthly
REMITTANCE inflows may go up and down but one thing which remains steady is the commitment of Jamaicans to sending money abroad to support children, their relatives and for other personal projects.
The Bank of Jamaica (BOJ) indicates that between January and March 2022 Jamaicans remitted US$70.7 million abroad.
Most of the amount, or US$41.4 million, was remitted to the United states, with the remainder to the United Kingdom, Canada and China. Other countries accounted for the rest.
For the similar period in 2021, January to March, Jamaicans sent US$62.3 million abroad. The amount sent to the United States was US$36.8 million.
For the full year in 2021 US$238 million was sent by Jamaicans to contacts abroad, and in 2020 the total amount was US$223.8 million.
Comparatively, the post-pandemic value of money sent by islanders abroad is still trending below 2019, in which year US$262.7 million was remitted abroad.
The Bank of Jamaica told the
Jamaica Observer’s Business Observer that it had no information on the various drivers behind what it described as peer-to-peer transfers between Jamaicans and connections overseas.
However, research source moneycloud.com indicates that the top reasons why money is remitted abroad include buying overseas properties; paying overseas tuition fees; overseas investments and divestments; sending money for friends and family support; paying for accommodation overseas; supporting a family member who is travelling overseas; paying for special purchases and events such as a wedding overseas; and payment of bills related to overseas commitments.
Cost of living impact
Remittance outflows, netted against inflows, usually reduce the remittance picture for Jamaica on an annual basis.
Remittance flows, both inbound and outbound, have been erratic since the start of 2022.
In its latest update for the month of March 2022, the BOJ indicated that net remittance inflows of US$276.5 million decreased by 9.4 per cent or US$28.7 million in comparison to March of 2021.
This resulted from a decrease in total remittance inflows of 10 per cent or US$32.7 million, partly offset by a reduction of 17.8 per cent or US$4.0 million in total remittance outflows.
The BOJ explained that the significant decline in remittance inflows for March is partly due to “the earlier timing of Easter in 2021 as well as increased cash in hand remittances as travel recovers”.
The central bank also said that increased cost of living in the main source markets was also a factor.
The month before, in February 2022, net remittance inflows of US$225.2 million increased by 6.0 per cent or US$ 12.7 million in comparison to February of 2021.
The improvement came from an increase in total remittance inflows of 8.0 per cent or US$18.8 million, partly offset by an increase of 26.0 per cent or US$6.1 million in total remittance outflows.