THE Bank of Jamaica (BOJ), in its new remittance report, indicates that for the January to July 2022 period remittance inflows to Jamaica amounted to US$1,959.4 million.

Inflows are expected to track pass the US$2-billion mark in the August report pending.

Visitors travelling with cash instead of using remittance channels were identified as a cause of slowing inflows.

In a regional comparison, it was noted, nevertheless, that that this outturn represented a decline of 3.4 per cent as opposed to Mexico, which registered growth of 16.5 per cent, while El Salvador registered growth of 3.1 per cent for the period July 2022.

For the month of July 2022 alone net remittance inflows of US$288 million declined by 4.7 per cent or US$14.4 million in comparison to July of 2021.

Total remittance inflows also declined, decreasing by US$18.1 million, partly offset by a reduction of US$3.7 million or 17.5 per cent in total remittance outflows.

According to the BOJ the decline in total gross remittance inflows largely reflected a fall of 7.3 per cent in inflows via remittance companies partly offset by an increase in inflows via the other remittances channel of 4.4 per cent for the month of July.

Cash in hand travel

The central bank stated that the decline in remittance inflows is partly due to a decline in economic conditions in the main source markets, the US and the United Kingdom, as well as increased cash-in-hand remittances as travel recovers.

The largest source market of remittance flows to Jamaica for July 2022 continued to be the US, accounting for 70.2 per cent of total flows down from 70.4 per cent recorded for July 2021.

Other source countries which contributed a notable share of remittances for the month were Canada at 11.3 per cent, followed by UK and the Cayman Islands a t 9.3 per cent and 5.6 per cent, respectively.