Online Banking

Latest News

CARICOM Moves Step Closer to Regional Strategy for Services Sector Published: 06 April 2022

  • The Caribbean Community (CARICOM) has moved a step closer to implementing a Regional Strategy for the Services Sector for which it received Ministerial approval in March. 
  • When they met virtually on March 8th in a special session of the Council for Trade and Economic Development (COTED), CARICOM Ministers who hold responsibility for the Services Sector approved SWOT analyses for nine sub-sectors. The approved SWOT analyses include seven priority sectors – Professional Services; ICT Services; Postal and Courier Services; Health and Wellness Services; Cultural and Entertainment Services, Sporting Services; Education Services; and Tourism Services. The SWOTs will now inform national and regional planning, as well as provide the basis for requests for technical and financial assistance from the international community.  
  • The Ministers also approved a COVID-19 Services Sector Response Plan. The approval of the Response Plan came as the Member States were rolling back measures that were in place to reduce the spread of the virus, allowing for the safe re-opening of their economies.  
  • With the decisions the Ministers took, the Services Sector is poised to be a major catalyst in CARICOM’s recovery from the COVID-19 pandemic, as well as a key vehicle through which the Region can achieve its objectives of full employment and increased standard of living. The Sector can also help the Region to deliver its commitments under the Sustainable Development Goals including poverty reduction, increased female participation in the market and good governance.

(Source: CARICOM Today)

Yellowtail Project Enhances Foundation For Global Energy Transition Published: 06 April 2022

  • Being the largest project in the Stabroek Block offshore Guyana, ExxonMobil’s US$10 billion Yellowtail project, which was sanctioned recently by the government, possesses immense resources that could enhance the foundation for the global energy transition. 
  • Yellowtail’s development demonstrates the successful partnership between ExxonMobil and Guyana. President of ExxonMobil Upstream Company, Liam Mallon explains that this development “helps provide the world with another reliable source of energy to meet future demand and ensure a secure energy transition.” 
  • The project is expected to produce up to 250,000 barrels of oil per day after startup in late 2025, using the “One Guyana” Floating Production, Storage, and Offloading (FPSO) vessel. This massive project will be crucial to the global energy transition since ‘oil and gas’ is projected to account for 46% of the global energy demand by 2030. 
  • In Guyana, ExxonMobil through its ongoing offshore exploration activities has discovered a recoverable resource of more than 10 billion oil-equivalent barrels. The company anticipates up to 10 projects on the Stabroek Block to develop this resource. ExxonMobil is working to maximise benefits for the people of Guyana and increase global supplies through safe and responsible development on an accelerated schedule. 
  • Guyana continues to position itself as a key producer in the oil and gas industry, with the capacity to cushion some of the supply shortfalls on the global market. As such, the industry will continue to contribute to the country's revenue, investment opportunities, and economic growth.

(Source: Guyana Chronicle)

Oil Eases On Pandemic Worries, Strong U.S. Dollar Published: 06 April 2022

  • Oil prices eased in volatile trade on Tuesday, pressured by a rising U.S. dollar and growing worries that new coronavirus cases could slow demand; however, losses were limited by supply concerns due to sanctions on Russia for alleged war crimes. 
  • The US dollar hit its highest in nearly two years on Tuesday, boosted by hawkish comments from Federal Reserve officials who pushed for a quick reduction in the central bank’s bloated balance sheet. A stronger dollar makes oil more expensive for holders of other currencies. 
  • However, demand worries mounted after authorities in top oil importer China extended a lockdown in Shanghai to cover all of the financial center's 26.0Mn people. 
  • Brent futures fell 89 cents, or 0.8%, to settle at $106.64 a barrel. U.S. West Texas Intermediate (WTI) crude fell $1.32, or 1.3% to settle at $101.96. 
  • “Oil prices will likely stay at around US$100 a barrel for a while amid demand concerns and an expectation for no conflict in the Middle East during the Muslim fasting month of Ramadan, but they may rise again after Ramadan and as the U.S. driving season kicks off,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

(Source: Reuters)

Fed's Patrick Harker Is 'Acutely Concerned' About Inflation, Sees 'Deliberate' Rate Hikes Published: 06 April 2022

  • Philadelphia Federal Reserve President Patrick Harker joined the chorus of central bankers warning about inflation and the interest rate hikes needed to control rising prices. 
  • In remarks Wednesday, the policymaker said he is worried about an inflation rate running at its highest level in 40 years. He anticipates the Fed will respond by raising rates and reducing the level of bonds it is holding on its balance sheet. 
  • “The bottom line is that generous fiscal policies, supply chain disruptions, and accommodative monetary policy have pushed inflation far higher than I — and my colleagues on the [Federal Open Market Committee] — are comfortable with,” he said. “I’m also worried that inflation expectations could become unmoored.” 
  • Stocks dropped and bond yields rose following the comments. 
  • The policymaker expects “a series of deliberate, methodical hikes as the year continues and the data evolve,” though he wasn’t quite as emphatic about the issue of balance sheet runoff.

(Source: CNBC News)

Producer Prices Rose in February Owing to Commodity Price Shocks Published: 05 April 2022

  • For February 2022, output prices for producers in the Mining and Quarrying industry increased by 0.5%. The movement was mainly attributed to a 0.6% rise in the index for the major group ‘Bauxite Mining & Alumina Processing’. 
  • The bauxite and alumina market has been impacted by the substantial increase in energy and raw material costs, growing demand, decline in China’s production capacity, reduction in global inventories and the impact of COVID-19. Furthermore, fears over the supply of aluminium to the global market, following the sanctions against Russia which has the largest aluminium producer outside of China, also caused prices to reach new highs which influenced the rise in the index. 
  • The index for the Manufacturing industry increased by 3.1%. The main contributors to the increase in the index for the Manufacturing industry were the major groups, ‘Refined Petroleum Products’ up by 9.3%, ‘Food, Beverages & Tobacco’ which moved up by 1.7% and ‘Other Non-Metallic Mineral Products’ which increased by 6.9%. This industry continues to be adversely affected by higher costs for shipping and raw materials on the international market owing to both the lingering effects of the pandemic and the current geopolitical tensions between Russia-Ukraine. 
  • These February outturns contributed to a 12-month point-to-point (February 2021 – February 2022) increase of 39.9% and 22.2% in both the Mining & Quarrying and Manufacturing industry indices, respectively. It is anticipated that these indices will rise further in the near term as the Russia-Ukraine conflict and its impact on commodity prices continue to unfold.

(Source: STATIN and NCBCM Research)

Sagicor Group Jamaica Completes Purchase of AFSL, Cambio & Remittance Operations to Restart Published: 05 April 2022

  • Sagicor Group Jamaica (SGJ) announced on Friday, April 1st, that it has completed the purchase of 100% of the shares in Alliance Financial Services Limited (AFSL) having satisfactorily completed all due diligence and regulatory requirements. 
  • AFSL is now licensed to offer cambio and remittance services at approved locations, and as such, it and its approved sub-agents have resumed full Cambio and Remittance operations as of Monday, April 4th. 
  • The acquisition of AFSL is aligned with the Group’s overall strategy for growth, and will present opportunities for the company to move into new business segments and expand its product offerings to clients. 
  • This acquisition is expected to be a significant earnings driver as AFSL was a significant player in the remittance market before the BOJ suspended its license back in December 2021.

(Source: JSE and NCBCM Research)

Rising Prices to Slow Private Consumption, Weakening Colombian Growth In 2022 Published: 05 April 2022

  • Fitch Solutions revised Colombia’s growth forecast to 3.6% in 2022, from 3.8% previously, as the Russian invasion of Ukraine exacerbates pre-existing headwinds to growth. 
  • The Colombian economy is a major exporter of crude oil and other commodities, and will likely outperform many of its regional peers in terms of real GDP growth. Furthermore, high commodity prices will help to incentivise domestic production and bolster export growth, partially offsetting a weaker outlook for household consumption and investment in the coming quarters. 
  • Elevated inflation and rising interest rates will weaken private consumption growth to 3.5% in 2022, from 14.6% in 2021, and investment growth will slow to 4.2% in 2022, from 9.9% in 2021, as the 2022 presidential election tempers fixed capital formation. 
  • While Columbia’s export growth will remain strong due to stronger demand for crude oil and other commodities, exports will slow to 8.3% in 2022, from 14.2% in 2021, due to weakening global growth and external demand. 

(Source: Fitch Solutions)

Oil Jumps Over 3% As Deaths Near Kyiv Prompt Talk of New Sanctions Published: 05 April 2022

  • Oil prices jumped over 3% on Monday, with investors worried about tighter supply as mounting civilian deaths in Ukraine increased pressure on European countries to impose sanctions on Russia's energy sector. 
  • Global benchmark Brent crude jumped $3.14, or 3%, to settle at $107.53 a barrel. U.S. West Texas Intermediate crude rose $4.01, or 4%, to settle at $103.28 a barrel. Trading was volatile with both contracts rising after being down more than $1. 
  • German Chancellor Olaf Scholz said Russian President Vladimir Putin and his supporters would feel the consequences of events in Bucha, outside the capital Kyiv, where a mass grave and tied bodies shot at close range were found. 
  • He noted that Western allies would agree on further sanctions against Moscow in coming days, though the timing and reach of the new package was not clear. France's President Emmanuel Macron suggested sanctions on oil and coal, adding there were very clear clues pointing to war crimes by Russian forces. 
  • As the U.S. and EU reduce purchases of Russian oil, it leaves China and India as the main customers that remain and many of the refineries in those countries might be reluctant to purchase Russian oil with the negative public relations associated.

(Source: Reuters)

U.S. East Coast Jet Fuel Costs Soar On Shortage Fears Published: 05 April 2022

  • Jet fuel prices are soaring on the U.S. East Coast, home to some of the world's busiest airports, with buyers anticipating a worsening shortage as supply dwindles amid sanctions on Russian energy exports. 
  • Following Russia's Feb. 24 invasion of Ukraine, the United States and allies slapped heavy sanctions on Russian industry, leading to a tightening in worldwide energy markets. Russia is the world's largest exporter of crude and petroleum products, and the supply crunch is filtering through to global markets. 
  • The East Coast largely relies on shipments on the Texas-to-New Jersey Colonial Pipeline for refined products, as well as imports from Europe. However, Europe is dealing with its own supply strains, so distillate exports to the U.S. East Coast - also known as PADD 1 - are down nearly 60% on a year-on-year basis, according to Refinitiv Eikon data. 
  • East Coast jet fuel costs have reached record highs in recent days, with spot prices in New York Harbour exceeding $6.60 per gallon on Friday, more than double the seasonal average, according to data from oil traders citing OPIS and S&P Global Commodity Insights. 
  • The surge in fuel costs and other supply shortfall worries are currently slamming air carriers and travellers with steep cost increases just as air travel was starting to recover from COVID-19 restrictions. If this is sustained, some travellers may be deterred from making leisurely trips, which could adversely impact tourism recovery in the Caribbean.

(Source: Reuters)

Jamaica recorded 6.7% GDP growth in the 4th Quarter of 2021 Published: 04 April 2022

  • The Jamaican economy continued to show signs of recovery from the impact of the COVID-19 pandemic and grew by 6.7% during Q4 2021 when compared to Q4 2020. 
  • This was due to increases in both the Services Industries (+9.0%) and the Goods Producing Industries (0.5%). The expansion of the economy was positively impacted by the relaxation of some COVID-19 measures, including the easing of global travel restrictions and reduced curfews hours. 
  • There was growth in all the Services Industries, except the Producers of Government Services, which declined by 0.1%. Improved performances were recorded for: Hotels & Restaurants (79.5%), Transport, Storage & Communication (10.1%), Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment (10.6%), Other Services (10.4%), Finance & Insurance Services (2.7%), Real Estate, Renting & Business Activities (2.1%) and Electricity & Water Supply (5.8%). 
  • Within the Goods Producing Industries, there were higher output levels for Agriculture, Forestry & Fishing of 13.8% and the Construction industry of 5.9%. However, there were declines in the Manufacturing and Mining & Quarrying industries of 2.2% and 60.5% respectively. The decline in Mining & Quarrying was due primarily to the major fire that occurred at the Jamaica Aluminum Company (JAMALCO) plant in August 2021, which resulted in reduced activities at the plant in the fourth quarter of 2021. 
  • We expect the mining industry to continue to contract in 2022 as the Alpart and Jamalco plants remain completely closed. The Alpart plant has been closed since 2019 to facilitate modernisation and expansion, following the fire in August 2021. It is estimated that the Jamalco plant will also remain closed until June 2022, when it will be partially reopened. The falloff in alumina production is occurring at a time when global aluminum prices are up 20.4% year to date due to the Russian Ukraine conflict. The decline in production at this time means that the island will not capture much of the benefit associated with the higher price. 
  • Preliminary estimates for the calendar year 2021 showed that the economy grew by 4.6% with the Services Industries and the Goods Producing Industries expanding by 4.7% and 4.3%, respectively.

(Source: STATIN & NCBCM Research)