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JAMAICA | Opposition wants action to calm the foreign exchange market

Featured Opposition Spokesman for Finance & Planning Mark Golding Opposition Spokesman for Finance & Planning Mark Golding
KINGSTON, Jamaica, February 1, 2019: The Opposition People’s National Party is calling on the Minister of Finance and the Governor of the Bank of Jamaica immediately to address the continuing severe shortage of supply of US Dollars which has plagued the local foreign exchange market over the past three weeks and has caused the ongoing rapid devaluation of the Jamaican Dollar.

In a press release, Opposition Spokesman for Finance & Planning Mark Golding said – “For this to be happening during the height of the Winter Tourist Season is unusual and perplexing, and there has been no clear and definitive explanation from either the Government or the BOJ as to what is causing this shortage of US Dollars and the rapid devaluation.

"There were dealers in the market today selling at J$138 to US$1.00 when just three weeks ago the rate was in the J$127 range. Businesses and consumers are anxious and need to know what is going on.”

Mr. Golding  observed that “businesses are unable to find the foreign exchange to pay their overseas suppliers, and this is adversely affecting their credit arrangements. And at these exchange rate levels, prices of imported goods can be expected to adjust, to the detriment of consumers.”

The Opposition Finance spokesman pointed out that “this is happening again after the BOJ has recently announced that Jamaica has breached the lower end of the Government’s inflation target, for the second time this fiscal year."

He said "It is a repetition of what took place in June/July last year, and in the absence of any explanation from the monetary authorities, I once again I ask the question –Are these repeated bouts of exchange rate volatility what Jamaica must expect as an unwelcome side effect of the BOJ adopting inflation targeting as its primary objective?”

  • Countries: Jamaica

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