• The Bank of Jamaica (BOJ) is currently leading an initiative to develop a centralised electronic Know Your Customer (eKYC) public utility system, which will streamline and simplify the process for opening a bank account.
• This will simplify the process for Jamaicans who wish to transfer their accounts to the bank that offers the best services and products. Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, disclosed a statement in the House of Representatives, on Tuesday (July 9).
• “In such a system, the customer information required for various banking transactions is stored digitally in a database that is kept securely and confidentially by a central trusted authority. When a customer is conducting business with any financial institution, that institution can access the customer’s information immediately, verify that the person is exactly who they say they are, and complete their transaction in minutes, not days or weeks,” he added.
• Clarke informed that the product is expected to be realised within the next two years, while adding that the system will achieve several objectives. “By empowering account holders, it will boost competition within the banking sector, realise essential national digital and financial inclusion goals, while at the same time modernising regulatory oversight,” the Minister noted.
• He argued that this simplification will also boost compliance with anti-money laundering (AML) and countering the financing of terrorism (CFT) laws and regulations across the financial sector.
• Clarke highlighted that the initiative also benefits commercial banks by significantly reducing operational and administrative costs associated with compliance management. He further stated that this effort will stimulate competition within the banking sector and improve the efficacy of monetary policy by facilitating the easy transfer of customer accounts from one bank to another.

(Source: JIS)

• Prime Minister, the Most Hon. Andrew Holness, says the Government is closely monitoring market activities to ensure unscrupulous individuals do not exploit the disaster and dislocation resulting from Hurricane Beryl’s passage on July 3 for financial gain.
• Speaking during a statement to the House of Representatives on Tuesday (July 9), Mr. Holness warned against price gouging, due to the possible impact of the hurricane on goods and services.
• Price gouging is the increase in prices to unfair levels due to a lack of supply or boost in demand.
• “We issued an order under the Trade Act to prevent price gouging on essential goods. I ask the public to report any instance of price gouging, meaning an increase in price over and above what you were paying for the same product or service before,” Holness stated.
• Prime Minister Holness maintained that citizens should have access to the necessary supplies at fair prices while advising that reports of gouging can be made to the Consumer Affairs Commission or directly to the Ministry of Industry, Investment, and Commerce.

(Source: JIS)

• Shell Trinidad and Tobago Ltd announced yesterday that it had taken a Final Investment Decision (FID) to develop the Manatee gas field, projected to produce a peak of 604 million standard cubic feet of natural gas per day.
• Shell stated that this development is part of its overall plan to expand its liquefied natural gas (LNG) business, as it believes that LNG will play a critical role in the global energy transition, with overall demand estimated to rise by more than 50% by 2040.
• The Manatee gas field is located in the East Coast Marine Area (ECMA) in Trinidad and Tobago and is part of the cross-border Loran-Manatee discovery, shared by this country and Venezuela. The field is believed to hold around 10 trillion cubic feet (tcf) of natural gas, with 7.3 tcf on Venezuela's side and the remaining 2.7 tcf on T&T's side.
• Energy Minister, Stuart Young expressed personal gratitude for the opportunity to negotiate the agreement with Venezuela to delink Manatee from Loran, allowing Trinidad and Tobago to develop the Manatee field independently. This was achieved in 2019. He added that the energy ministry subsequently negotiated and executed a production-sharing contract with Shell for the development of the Manatee field in November 2021.
• Manatee is slated to start production in 2027. Once online, Manatee is expected to reach peak production of approximately 104,000 barrels of oil equivalent per day (boe/d) (604 MMscf/d).
• The Energy Chamber of Trinidad & Tobago said it welcomed the news of Shell's FID for the development of the Manatee field. 'This is a very significant development for Trinidad and Tobago and will help create stability for the country's gas industry and by extension, our energy services companies.’
• ‘This is a major development, projected to deliver significant volumes of natural gas, equivalent to around 20% of current national gas production. This project has had a long and complicated history, not least because it is part of a field that straddles the maritime boundary with Venezuela. Delivering this project involved significant complex negotiations by the Government of Trinidad and Tobago, Shell, the Government of Venezuela and numerous other stakeholders,' the Energy Chamber stated.

(Source: Trinidad Express Newspaper)

• The Panama Canal expects to complete a billion-dollar construction of a new water reservoir within six years that will help ensure the passage of 36 ships a day, the administrator of the global waterway said on Monday.
• The Indio River reservoir project would become part of the network of existing artificial lakes that allow for safe passage through the canal and provide water for human consumption.
• "We are looking at six years," canal administrator Ricaurte Vasquez said. Vasquez said the project "would provide a little more certainty to maintain 36 transits per day, a higher level of reliability for the route."
• Increased rainfall in recent months has allowed the canal, the world's second-largest, to replenish its watershed, leading to an increase in transits that had been severely restricted last year amid a drought. Last month, the Panama Canal said after recent rains boosted water levels, it would increase the total number of available slots in both Neopanamax and Panamax locks to 35 slots after Aug. 5.
• Ricuarte estimated the project would cost around $1.2Bn, plus an additional $400Mn in investments in neighbouring communities.

(Source: Reuters)

• Federal Reserve Chair Jerome Powell said on Wednesday the U.S. central bank will make interest rate decisions "when and as" they are needed, pushing back on a suggestion that a September rate cut could be seen as a political act ahead of the fall presidential election.
• The state of the economy, and particularly the surge in housing, food and other costs in recent years, has been a potent issue for Republicans given public sentiment that remains sour given the high price of many items even as inflation itself has slowed. Rate cuts initially expected early this year were pushed back after inflation proved stickier than expected, with the Fed's monetary policy debate now lined up squarely with the fall campaign.
• Republicans focused on the conditions that would warrant lower rates and encouraged Powell to not move until inflation was beaten; Democrats tried to draw him out on issues like proposals by a Republican-aligned group, called Project 2025, to overhaul and potentially weaken the Fed, and cited their concerns about rising unemployment.
• Powell, over his two days of commentary before the Senate and House committees that oversee the central bank, indicated the Fed was edging closer to a rate cut decision, while also insisting that he was not yet ready to declare that inflation had been beaten. Powell and other Fed officials have said they will not cut interest rates until they have gained even greater confidence that inflation is headed back to the central bank's 2% target after a breakout surge during the pandemic.
• After hitting a 40-year high in 2022 the Fed's preferred measure of inflation, the Personal Consumption Expenditures Price Index, was 2.6% as of May. Powell reiterated the central bank will need to cut rates before the figure returns fully to 2%, but after the underlying momentum seems likely to take it there.
• The Fed next meets on July 30-31. While officials are expected to maintain the benchmark interest rate at the comparatively high 5.25% to 5.5% range approved in July of 2023, further progress on inflation could lead to key changes in their policy statement that pave the way for a September cut.

(Source: Reuters)

• China's consumer prices grew for a fifth month in June but missed expectations, while producer price deflation persisted, with domestic demand mired on a slow recovery track despite support measures for the world's second-largest economy.
• Beijing has sought to revive consumption after a stuttering post-COVID recovery, but concerns are lingering over more fundamental issues including a protracted housing downturn and job insecurity. That has dented consumer and industrial activity and reinforced calls for more effective policies.
• The consumer price index (CPI) in June rose 0.2% from a year earlier, against a 0.3% uptick in May, the slowest in three months, data from the National Bureau of Statistics showed on Wednesday, below a 0.4% increase forecast in a Reuters poll. "The risk of deflation has not faded in China. Domestic demand remains weak," said Zhiwei Zhang, chief economist at Pinpoint Asset Management.
• Food prices fell even more, despite supply disruptions caused by bad summer weather, underlining the soft demand. Food prices slipped 2.1% year-on-year, compared with a 2% decline in May. Notably, fresh vegetable prices tumbled 7.3% versus a rise of 2.3% in May. A decline in fresh fruit prices deepened to 8.7% from 6.7% in May.
• CPI edged down 0.2% month-on-month, versus a 0.1% drop in May and worsening from an expected 0.1% fall. The producer price index (PPI) fell 0.8% in June from a year earlier, less than a 1.4% decline the previous month, and matched a forecast 0.8% fall.
• The fall in the PPI was the smallest in 17 months, mostly attributable to a lower base last year. "The deepening declines in factory-gate prices of consumer durables underscores that excess manufacturing capacity remains a worsening issue," said Gabriel Ng, assistant economist at Capital Economics.
• "Government policy is still prioritizing investment, which is set to exacerbate the problem further. This will continue to weigh on inflation," said Ng, who estimated full-year CPI would rise just 0.5%, well below an official inflation target of 3% for 2024.

(Source: Reuters)

• A.S. Bryden & Sons Holdings Limited (ASBH), a company incorporated in Trinidad and Tobago, has announced that it has acquired a 44.8% strategic stake in Caribbean Producers Jamaica (CPJ) Limited.
• CPJ is a leading food and premium beverage distributor for major global brands focusing on serving hotels and resorts with operations in Jamaica and St. Lucia.
• ASBH acknowledges that its acquisition represents more than 20.0% of the issued share capital of CPJ under the Jamaica Stock Exchange’s General Principles relating to Takeovers and Mergers and the applicable securities regulations in Jamaica.
• Consequently, the company must submit a written statement to the Exchange and the listed company at its registered office or principal place of business via registered mail. This statement must include the amount of equity being acquired, the purpose of the acquisition, whether further acquisitions are planned, and if there is an intention to take control.
• For any additional 5.0% or more of the equities acquired, ASBH must, at the time of that acquisition, provide a similar statement until it has acquired 50.0% of the equity of
• ASBH is now the largest shareholder of CPJ. The company plans to continue making additional purchases of CPJ shares in the future to acquire control.
• The investment is consistent with ASBH’s strategy of expanding its business regionally, and its stake in CPJ will give it additional scale and expand its geographic footprint beyond Trinidad, Barbados, and Guyana to now include Jamaica and St. Lucia.
• Additionally, it will provide ASBH with new capabilities to serve the hotel, resort, and restaurant channels and give our business access to hard currency earnings.

(Source: JSE)

• Jamaica has already welcomed a record-setting two million visitors in 2024, showcasing the island’s beauty and vibrancy.
• To express gratitude, the Jamaica Tourist Board is introducing a limited-time “JAMGETAWAY” offer, providing up to 65% off at 50 participating hotels across six resort areas. The savings apply to reservations made between June 15 and July 31, 2024, for travel between September 1 and December 1, 2024.
• Participating resorts extend from Montego Bay to Negril, Ocho Rios, Kingston, Port Antonio and Jamaica’s South Coast. They include Sandals Montego Bay, Couples San Souci, The Cliff Hotel, AC Hotel Kingston, Trident Hotel, Sandals South Coast and many more.
• Tourism Minister, Hon. Edmund Bartlett highlighted that the country has seen unprecedented visitation in 2023 and 2024 and is now ahead of its schedule to achieve its goal of five million annual visitors.

 (Sources: JIS & Travel Pulse)

• The Dominican Association of Investment Fund Management Companies (Adosafi) emphasized the crucial role of investment funds in the Dominican Republic’s social and economic development at the UN’s Forum for Sustainability.
• Investment funds facilitate financial inclusion by allowing millions of Dominicans to participate in the country’s economic growth, with investment opportunities starting at RD$10,000. Santiago Sicard, CEO of Adosafi, highlighted their role in generating over 30,000 jobs and developing infrastructure such as roads, parks, and libraries.
• These initiatives also secure future pensions for many Dominicans. Supporting the UN’s 2030 Agenda for Sustainable Development, investment funds in the Dominican Republic have invested over USD$1,600Mn in 93 projects across 24 funds.
• Notably, in the energy sector, these funds have diversified energy sources and reduced carbon emissions significantly. Additionally, investment funds boost the tourism and real estate sectors, promoting community development, labour inclusion, and sustainable construction standards.
• Santiago reiterated that investment funds create profitability and wealth for Dominicans while contributing to social and environmental development. Their transformative power in promoting and democratizing development and sustainability has increased interest among individuals, businesses, and government officials in these financial instruments.
• In summary, investment funds are catalysts for sustainable development, driving economic growth, environmental sustainability, and social inclusion in the Dominican Republic.

(Source: Dominican Today)

• Fitch Solutions is maintaining its core view that growth in Bermuda will slow over the coming years after a stronger-than-expected post-pandemic rebound. Fitch forecasts real GDP growth of 2.3% in 2024 and 2.1% in 2025, down from a revised estimate of 4.3% growth in 2023.
• The tourism and international financial service sectors will remain key drivers of headline growth, though less favourable base effects, capacity constraints and slower growth in the US - the main source market for tourists - will pose headwinds over the coming quarters.
• Fitch expects domestic demand growth will moderate after recovering to pre-pandemic levels, with cost of living pressures likely to remain a drag on private consumption despite moderating inflation.
• On the fiscal front, government spending and public investment will make limited contributions to headline growth in 2024 as the government continues to prioritise fiscal consolidation in the short term.
• Risks to the growth forecasts are tilted to the downside; a renewed increase in commodity prices would drive up inflationary pressures in Bermuda and further weigh on consumption and investment activity.
• Further, a sharper-than-expected slowdown in the US would also likely lead to weaker growth in Bermuda due to its significance for the key tourism sector. More generally, Bermuda’s small size, narrow export base, and over-reliance on financial services and tourism leave it vulnerable to external shocks.

(Source: Fitch Solutions)