Cash remittances fall over 40% during lockdown

| 22/09/2020 | 11 Comments
Cayman News Service

(CNS): The closure of money transfer services during lockdown had a massive impact on the amount of cash that left the Cayman Islands during the second quarter of this year, CIMA has said. Well over US$26.6 million less went offshore during April, May and June than would normally be sent during that time of year, according to a collection of CIMA reports on quarterly remittances. However, the drop may still be short-lived.

The report shows that during during the second quarter $37.9 million was remitted from Cayman overseas, a decline of 41.2% compared with the $64.5 million sent over the same period last year. Cash transfer services were not declared essential and were closed completely during April and open for only limited periods in May and June, with services not returning to regular hours until July.

In addition, many workers were not being paid during lockdown and many work permit holders who were made redundant also left the jurisdiction.

But there is reason to expect that the figures for the third quarter could rebound significantly. While worldwide estimates are that this business is facing a global decline of some 20%, it may not be that severe yet in the Cayman Islands as a result of the pension fund payouts. Some pension providers have warned that massive amounts of that cash will not be spent in the local economy but it will be remitted overseas.

Jamaica, Honduras and the Philippines remain the top three countries where cash is sent to from Cayman, but 63% of all the money sent during the second quarter this year went to Jamaica. The third quarter reports will offer a more realistic picture of where this business sector stands in the post-COVID-19 world.

According to the CIMA, the inflow of cash to Cayman also declined during this period from around $2 million last year to just under $1.2 million in 2020. Money coming into Cayman comes largely from the United States, which accounted for 60% of the funds.

See the reports on the CIMA website here.

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Category: Banking & money, Business

Comments (11)

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  1. Jim says:

    The islands not going to make it.!

  2. StopTheCrime says:

    Bitcoin solves all of this and does it faster, cheaper and from your own phone. People need to educate themselves on using it. It really is the future.

  3. Anonymous says:

    Caymanians should prepare themselves for a lot more bad news.

  4. Anonymous says:

    Good, people should be spending their earnings here on supporting our economy if they’ve chosen to come live here, not sending cash off Island for the benefit of lazy scroungers who add zero value for our economy.

    • Anonymous says:

      People should spend their money however they damn well please. They owe you nothing.

    • Anonymous says:


    • Stand against morons says:

      6.54pm This is an outrageous comment made worse by the numbers of thumbs up who obviously suffer from the same ignorance as the writer. Those sending part of their earnings back home do so to support their families who are usually very poor, and this is why many of the remitters came here in the first place. To call their families lazy scroungers is ridiculous. As for spending here, how do you think they feed and shelter themselves whilst in Cayman.
      Shame on you and your ilk.

    • Anonymous says:

      How about putting this in the context that most who come and work here are not welcomed to stay. They know it’s a temporary gig and thus do what any human being would do. Newsflash – people weren’t put on this earth to serve Cayman.

    • Anonymous says:

      Good luck getting hard workers to spend their hard earned money on you lazy scroungers who add zero value for your own economy instead of their families. With the rest of the island shutting down to hide from Covid you will soon have to learn to live without expat money. Better brush off your rope making skills.

    • Anonymous says:

      …doing the difficult essential work that Cayman’s lazy scroungers won’t do….and for the limited period they are allowed to reside here! Can you even hear yourself?

  5. Anonymous says:

    Nuff NAU money reach back a yad 😂

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