AT least one CEO believes the Russian invasion of Ukraine could result in remittance flows to the island increasing.

Michael Howard, CEO of VM Money Transfer, outlined his belief while speaking at a recent VM Group Forum.

Howard qualified his belief by pointing out that historically, Jamaicans overseas tend to boost remittance flows when there is hardship such as what is being presented by the Russian war in the Ukraine. The war has resulted in oil and food prices rising substantially, stoking inflation around the globe and forcing central banks to raise interest rates as a means of defence.

“Globally, prices will definitely increase [in light of the Ukraine-Russia conflict]. In the US, where almost 70 per cent of remittances to Jamaica comes from, there have already been changes in oil prices. Where remittances to Jamaica are concerned, however, we expect to see those actually increase as well. It’s something we have seen time and time again. In times of great hardship, Jamaicans overseas find a way to send more money back home to their loved ones,” said Howard.

“During the very worst days of COVID globally, we had record remittances coming into Jamaica. It really reflects the well-known resilience of Jamaicans, and the love and loyalty that we have for our family and friends. No matter how hard things get, that Jamaican spirit keeps going and we somehow find ways to continue to support the people we love. I believe that as this unfortunate event continues to unfold and, indeed, if its impact on global economies gets worse, there will be a parallel increase in remittances to Jamaica. People may think that sounds strange, but we have seen it over and over again,” said Howard.

Net remittance inflows to Jamaica last year were valued at US$3.93 billion. It was up 20 per cent from 2020 when US$2.81 billion in net remittances was sent to the island.

In January, which is the latest data available publicly on aggregate remittances, the net remittance inflow was US$231 million, down from US$234 million a year ago.