Business leaders welcome plans to help BOJ halt J$ slide
Two leading members of the business community have welcomed the announcement of the Finance Minister Audley Shaw to establish a working group to help the Central Bank respond to the slide in the value of the Jamaican dollar now trading at $129 to US$1.
Past president of the Jamaica Manufacturers’ Association Omar Azan says the establishment of the working group is the first step in what should be a multi-pronged approach to respond to the slide in the value of the local currency.
The President of the Jamaica Chamber of Commerce Warren McDonald says the working group could help to promote confidence in the local currency.
Azan says it may be time for the Government to make bold decisions like implementing a policy of dollarisation.
Dollarisation is where a country uses the currency of another state as legal tender for domestic transactions.
This practice helps to create greater stability in the value of a foreign currency over a country's local currency but the downside is that the state will have to adjust its money supply.