• The Government of Jamaica (GOJ) along with several international partners are discussing a framework to establish a ‘Blue Green Facility’ –a blended financing structure–of up to USD 500 million over five years, which would include a contribution from the Government of Jamaica.
• Among the international partners are the Development Bank of Jamaica, the Green Climate Fund (GCF), the Inter-American Development Bank (IDB), the World Bank Group, the European Investment Bank as part of Team Europe, USAID, and the United Kingdom.
• Such a programmatic approach will help catalyze climate finance by introducing systematic, coherent, and scalable approaches towards adaptation and mitigation needs. This support comes in the form of the US$764 million Resilience and Sustainability Facility (RSF) arrangement approved by the International Monetary Fund (IMF)’s Executive Board in March 2023.
• Following the conclusion of Jamaica’s second review of the RSF, the IMF has disbursed an additional (Special Drawing Rights) SDR191.45 million (about US$254 million).
• The authorities continue to make swift progress in their ambitious climate policy agenda under the RSF to increase resilience to climate change and catalyze climate financing.
• Recent reforms include steps to establish a national natural disaster reserve fund, strengthen climate-related elements in public investment management, and enhance the climate risks assessment in the financial system to embed these risks into supervisory activities.
• These reforms have built on steps taken in early 2023 to strengthen the natural disaster risk financing policy, the policy framework for Public-Private Partnerships, the electric vehicle policy, and the guidelines for energy efficiency in public buildings.

• The United Arab Emirates and Costa Rica have signed an agreement that will help improve bilateral trade and investment ties, UAE President Sheikh Mohammed bin Zayed Al Nahyan said on Thursday, April 18.
• The Middle Eastern and Central American countries signed a Comprehensive Economic Partnership Agreement (CEPA), the president said in a post on social media platform X.
• CEPAs signed by the UAE are broad free trade agreements that typically include clauses covering investment and services.
• Bilateral non-oil trade between the two countries was worth $65Mn in 2023, up 7% on the previous year, according to a report carried by UAE's state news agency on the CEPA signing. The UAE is a major international re-export hub that handles goods being sent to and from Asia, Africa, Europe and elsewhere.
• This agreement will allow Costa Rica greater access to markets and trade opportunities in the UAE, which could likely result in improvements in its external account and international reserves if exports improve.

 (Sources: Reuters & NCBCM Research)

• Trinidad and Tobago’s inflation rate for March 2024 was 0.8% according to the Central Statistical Office (CSO), which released its Consumer Price Index.
• The inflation rate remained unchanged from what was recorded in the previous period (February 2024/ February 2023), the CSO said in a statement. The inflation rate for the period between March 2022 and March 2023 was 7.3%.
• The CSO stated that the Index for Food and Non-Alcoholic Beverages decreased from 147.9 units in February 2024 to 146.2 units in March 2024, reflecting a decrease of 1.2%.
• Contributing significantly to this decrease was the general downward movement in the prices of fresh whole chicken, tomatoes, cucumber, cheddar cheese, table margarine, celery, fresh king fish, plantains, fresh carite and soya bean oil, the CSO stated.
• However, the full impact of these price decreases was offset by the general increase in the prices of grapes, hot peppers, oranges, melongene, bodi, ochroes, pumpkin, frozen whole chicken, parboiled rice and fruit drinks.
• A further review of the data for March 2024 compared to February 2024 reflected an increase in the sub-index for Alcoholic Beverages and Tobacco of 1.1%. This period also showed a decrease in the sub-indices for Clothing and Footwear of 0.2%, the CSO stated.

(Source: Trinidad Express Newspaper)

• International Monetary Fund Managing Director Kristalina Georgieva bemoaned the slow pace of global growth on Thursday, saying that Europe needed to do more to boost productivity and China should work to unleash greater consumer spending.
• Georgieva told a news conference during the IMF and World Bank spring meetings in Washington that several factors are converging to hold back growth in Europe and China, from ageing populations to sub-optimal allocations of capital, while the U.S. has far outperformed expectations.
• The IMF on Tuesday forecasted global growth at 3.2% for 2024. This is well below its 20-year pre-pandemic average of 3.8% amid lacklustre performances in Europe and China and the impact of high interest rates and regional wars on developing economies.
• Of note, it boosted its U.S. growth forecast by 0.6% to an above-potential 2.7% for 2024, while cutting the forecast for the eurozone by 0.1% to 0.8%.
• Georgieva said the U.S. has done a better job of harnessing technology innovation and turning it into scalable business activity. The U.S. also benefited from domestic energy production, which has kept energy prices low and immigration, which created an ample labor supply without too much wage inflation.
• Georgieva advocates for fiscal restraint among IMF member countries in light of the COVID-19 pandemic and subsequent economic challenges. She warns against excessive spending, citing heavy debt burdens and the need for fiscal resilience to prepare for future shocks.

(Source: Reuters)

• Brent futures saw a second consecutive day of lows since March 27, having settled at $87.11 a barrel, while WTI crude settled at $82.73. Mixed U.S. economic data, coupled with sanctions on Venezuela and Iran and easing tensions in the Middle East, influenced investor sentiment.
• Increased interest in energy trading was evident with open interest in Brent futures reaching its highest since February 2021. Additionally, U.S. diesel futures dropped to their lowest level since January, impacting refining profit margins, measured by the diesel crack spread, to their lowest since April 2023.
• Venezuela lost a key U.S. license for oil exports, impacting its crude and fuel sales, while U.S. sanctions on Iran targeted its unarmed aerial vehicle production. However, the sanctions did not extend to Iran's oil industry.
• While Geopolitical tensions and supply dynamics continue to influence oil market sentiments, investors are gradually unwinding the geopolitical risk premium in recent sessions.

(Source: Reuters)

• Wigton Windfarm Limited (WIG) has announced that the Entrenched Articles (Limitations on Shareholdings), which provide for the special rights redeemable preference share of J$1.00 (“Special Share”) held by the Accountant General of Jamaica and the 10% shareholding limit, will cease to have any effect on the expiration of the Entrenchment Period.

• This announcement was per Wigton’s Articles of Incorporation. The Entrenchment Period is five (5) years from April 17, 2019, when the application list in the initial public offer launched by the Government was opened.

• This means that the Special Share held by the Accountant General of Jamaica will be surrendered and the 10% shareholding will cease to apply on April 17, 2024.

• The removal of the cap on shareholdings allows for the possibility of change in control, as an individual or group of individuals may now take control of the organization.

(Sources: JSE)

• GraceKennedy Limited (GKL) has announced that GK Investments Limited, a wholly-owned subsidiary of GraceKennedy Limited has purchased 60,000,000 units of shares in Spur Tree Spices (Jamaica) Limited thereby increasing its ownership to 20.18%.

• GK Investment now becomes the second-largest shareholder in the company. The largest shareholders are Harrinarine Mohan Jagnarine and Chandra Jagnarine who together own 31.18% of the company.
(Source: JSE)

•  (RBPF) surged by 54% to 830 incidents in 2023, representing a five-year high.
• Data unveiled showed that total financial-related crimes beat the previous five-year high of 800 in 2019. Notably, incidents of forgery and possession of forged documents both doubled year-over-year (YoY) compared to 2022.
• YoY, reports of forgery to the RBPF increased by 100% from 15 to 30, while reports of forged document possession rose by 144% from 18 to 44. However, no explanations were provided for the increases.
• The only financial crime categories to report a YoY reduction in 2023 were the possession of forged banknotes and proceeds from crime. No complaints for bribery, falsification of accounts or uttering forged documents were reported.
• The most commonly reported offence, fraud by false pretences, increased by 97% from 204 the prior year to 401 accounting for close to half of all financial crime incidents. Stealing by reason of employment rose by 55% YoY, from 56 to 87 complaints, while stealing by way of service increased by 34% from 130 to 174 reported incidents.

(Source: The Tribune)

• The Biden administration has signalled that it could reimpose oil sanctions on Venezuela on Thursday, April 18, in response to what U.S. officials see as President Nicolas Maduro's failure to meet his commitments for free and fair elections this year.
• Barring any last-minute concessions by Maduro, the U.S. has made clear it is not likely to renew a six-month license that granted the OPEC member partial sanctions relief. The relief was in place from October, following an election deal reached between the government and the Venezuelan opposition.
• Washington had repeatedly threatened in recent months to reinstate punitive measures on Venezuela's vital oil and gas sector unless Maduro made good on his promises. These promises include allowing the opposition to run the candidate of its choice against him in the July 28 election.
• Weighing on the U.S. decision have been concerns about whether reimposing sanctions on Venezuela's energy sector could spur higher global oil prices and increase the flow of Venezuelan migrants to the U.S.-Mexico border as Biden campaigns for reelection in November.
• Maduro's government has repeatedly reacted in defiance of Washington's warnings. "International companies continue coming to Venezuela," Venezuelan Oil Minister Pedro Tellechea said in Caracas. "With or without sanctions, Venezuela will be respected."
• Venezuela's oil exports in March rose to their highest level since early 2020 as customers rushed to complete purchases ahead of the possible return of sanctions. 

(Source: Reuters)

• The U.S. dollar is gaining momentum due to concerns about persistent inflation and uncertainty regarding the Federal Reserve's ability to cut interest rates compared to other central banks. The U.S. dollar index has risen by 4.6% this year and experienced its largest weekly gain since September 2022.
• Market participants anticipate the Fed will need to maintain current interest rates for a longer period to combat potential inflation. Stronger-than-expected consumer price data last week reinforced this belief, with Investors pricing in fewer interest rate cuts for 2024 than earlier expectations.
• Conversely, other central banks like the European Central Bank, the Bank of Canada, and Sweden's Riksbank are perceived to have more flexibility in easing monetary policy, marking a shift from previous expectations where the Fed was expected to lead rate cuts.
• Widening yield differentials between the U.S. and other economies are contributing to the dollar's rally as higher U.S. yields make dollar-denominated assets more attractive.
• A stronger dollar may complicate inflation control efforts for other economies by depreciating their currencies while aiding the U.S. to manage consumer prices by tightening financial conditions.
• Dollar strength could pose challenges for U.S. multinational companies by increasing the cost of converting foreign profits into dollars and reducing the competitiveness of their exports. Additionally, geopolitical uncertainties have boosted demand for the U.S. dollar as a safe-haven asset, contributing to its recent strength amid fears of escalating conflicts in the Middle East.

(Source: Reuters)