Sat | Sep 23, 2017

Clarity needed, Minister Shaw

Published:Thursday | November 24, 2016 | 11:00 AM

THE EDITOR, Sir:

I have noted the response to the Gleaner's of November 21, asking for clarity on the proposed foreign exchange auction system to be used by the Bank of Jamaica (BOJ). Two things are immediately apparent.

One is that while the Gleaner called for a response from Finance Minister Audley Shaw and BOJ Governor Bryan Wynter, neither obliged. Instead, there was a joint article by two IMF officials.

Second, their article did not provide clarity. How is this system going to work?

Since the Gleaner's editorial I have asked a number of bankers, who have been unable to shed light on the system.

Those of us who remember the auction system of the 1980s recall that it was not the most efficacious for allocating FX. It was often manipulated by the central bank and the finance ministry.

The Gleaner's questions are pertinent. There is need for clarity, sooner rather than later.

Respectfully,

Fractus Gordon