New data provided by the Bank of Jamaica (BOJ) for the period 2020 to 2022 shows that while the number of monthly money transfer transactions are declining, the average size of transfers by those sending remittances to Jamaica is on the increase.

Additionally, there were between 800,000 and one million money transfers to the island each month according to data for the last three years. The data did not segregate how many of these transfers were sent by the same individual.

The data also shows that December, the month in which it is believed cash is often sent as a holiday gift, is not always the month of highest inflows, as remittances have crested at other periods over the last three years.

In 2021, the year of the largest level of inflows, historically, when US$3.45 billion in funds were sent to the island, the number of transactions also hit a historic high of over 12 million or precisely 12,107,625.00 — that’s over one million transactions per month.

In contrast, in 2020 the number of transactions were over 10 million or 10,951,423.00. Year-to-date (January to October 2022), the number of transactions are 9,656,148.00. Two reporting months remain to be added (November and December) for 2022.

The average size of individual money transfers have been increasing, being US$222.80 in 2020, US$248.66 in 2021 and year-to-date in 2022 being US$252.79.

In 2020, the highest number of inflows were in the month of December when over one million transactions or precisely 1,141,810.00 transfers were concluded. In 2021 the highest number of transactions were in March, numbering 1,141,747.00. Year-to-date the highest number of inflows were in April 1,006,784.00.

Over the last three years, the lowest number of transfers have occurred in January and February, in 2020 inflows were the lowest at 717,988, while in 2021 the lowest month was February with 883,356 transactions and year-to-date 2022 the lowest month was January with 816,779 transactions.

In commenting on the declining number of transactions and lower levels of inflows year-to-date than 2021, and reduced number of transactions compared to pandemic year 2020. The BOJ opined, “We hypothesise that during the height of the pandemic, there may have been an increase in remittance inflows via the formal channels as non-resident Jamaicans were no longer able to travel to Jamaica and carry their remittances to relatives ‘in their pockets’. The uses of the formal channels therefore resulted in an increase in measured remittances. As travel resumed, ‘cash in pocket remittances’ may have resumed, resulting in a decrease in remittances sent via the conventional channels (and hence, a reduction in measured remittances).”

The BOJ stated, “Enhanced stringency measures during the height of COVID-19 resulted in significant losses in incomes. The Diaspora responded by increasing the amount remitted. As the economy [and employment] recovers, the volume of remittances has started to normalise.”

In 2022 the central bank added, “Higher global inflation has constrained incomes of Jamaicans living in the Diaspora, resulting in a reduced capacity to send remittances.”

The largest money transfer agency in Jamaica, Western Union, has reported a reduction in inflows during the year.

While it is projected that remittances will again exceed US$3 billion this year, it is expected to be below the historic inflows of 2021.