Sun | Mar 18, 2018

Peg J$ to greenback

Published:Friday | April 1, 2016 | 12:00 AM


I propose that the Government seriously consider the idea of pegging the Jamaican dollar to the US dollar.

This idea has long been advocated for by former Prime Minister Edward Seaga, who, incidentally, during his stint as finance minister, was able to maintain a stable currency and successfully grow the Jamaican economy during the period 1980-1989.

Singapore, which ranks in the world's top five as a financial centre, has used this method of pegging its currency to the British pound sterling and the US dollar, and from 1985 has floated its currency within a bandwidth that is closely monitored by the Monetary Authority of Singapore.

I believe that now is an opportune time for the Government to do all that is necessary to fully adopt and implement this idea as a means of stabilising the Jamaican currency and give those in the productive sector the chance to become competitive.