WESTERN BUREAU:
CAMBIO DEALERS are complaining about a marked decline in business, and they are blaming it on a reduction in foreign exchange inflows sparked by sluggishness in the tourist industry.
The Cambio Association of Jamaica (CAJ), which has some 67 registered Cambio entities at 137 locations islandwide, is pointing to a 20 per cent decline in business since mid-January.
Earl Harriot, chairman of the association, told The Gleaner that during "December and the first 2 weeks in January, business was fairly good due to remittances from abroad, but since then business has slowed considerably."
According to the CAJ head, while islandwide trade is US$22-23 million per day, it is not a true indication of the state of business by Cambio dealers, as much of that business is duplicated flows from the authorised dealer to the bank and back to the authorised dealer.
He says that of that amount, only about US$11-12 million is actual cash handled by cambio dealers.
The CAJ meantime is expressing concern over the hike in operational costs for its members due to the implementation of measures to beef up security.
"As the crime wave increases it is not only serving as a deterrent to tourists and consequently the earning power of dealers, but puts great pressure on dealers to increase the manpower and technology in security measures at Cambio locations," Mr. Harriot said.
"Such a move has driven up operational costs by at least 15 per cent."
The group is also concerned about the spate of robberies targeting its members along the north coast.
More than a week ago, gunmen made off with thousands of dollars from Cambio King on Gloucester Avenue, Montego Bay. Two other cambios in the western city, and another in Ewarton, St. Catherine, have also been robbed recently.
