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<span style="font-weight: bold">News Source: OTGNR - </span>
<span style="font-weight: bold"> Bank of # Jamaica dashes hope of brisk Christmas sales ( RJR )...</span>
Expectations of an up tick in commercial activity this Christmas have been dashed in the wake of a report from the Bank of Jamaica (BoJ). The Central Bank is forecasting that during this month the public will further reduce its demand for currency in real terms when compared to 2009.In a news release issued Tuesday night the Central Bank said currency spending will further decline by approximately 1.9% in real terms following last year's 4% drop. The BoJ explained that the fall-off is expected in the context of the financial challenges facing households, the sharp increase in credit card receivables and the relatively high levels of non-performing loans.Given these developments, the BOJ is projecting that the currency stock will increase by approximately $9 billion or 19.5% this month relative to the end of last month.This should translate to a currency stock of just under $57 billion by the end of this month.Currency issue is expected to rise sharply by mid-month and peak at approximately $59.1 billion during the December 24 to 27 period.However, the BoJ said an increase in the demand for cash does not necessarily mean that consumers are buying more goods and services than they did a year ago.It cited last year as an example when the currency stock rose by $8.6 billion or 20% in nominal terms.But in real terms, consumers spent 4% less than they did in December 2008, via the use of currency.
<span style="font-weight: bold"> Bank of # Jamaica dashes hope of brisk Christmas sales ( RJR )...</span>
Expectations of an up tick in commercial activity this Christmas have been dashed in the wake of a report from the Bank of Jamaica (BoJ). The Central Bank is forecasting that during this month the public will further reduce its demand for currency in real terms when compared to 2009.In a news release issued Tuesday night the Central Bank said currency spending will further decline by approximately 1.9% in real terms following last year's 4% drop. The BoJ explained that the fall-off is expected in the context of the financial challenges facing households, the sharp increase in credit card receivables and the relatively high levels of non-performing loans.Given these developments, the BOJ is projecting that the currency stock will increase by approximately $9 billion or 19.5% this month relative to the end of last month.This should translate to a currency stock of just under $57 billion by the end of this month.Currency issue is expected to rise sharply by mid-month and peak at approximately $59.1 billion during the December 24 to 27 period.However, the BoJ said an increase in the demand for cash does not necessarily mean that consumers are buying more goods and services than they did a year ago.It cited last year as an example when the currency stock rose by $8.6 billion or 20% in nominal terms.But in real terms, consumers spent 4% less than they did in December 2008, via the use of currency.