PRIME MINISTER P.J. Patterson is to lead Government-private sector consultations on the current developments in the local currency markets, as well as private sector proposals on the issue of taxation.
In a statement from Jamaica House yesterday, the Prime Minister indicated that Finance Minister Omar Davies had recently returned from consultations with multilateral agencies and the private capital market in Washington, D.C., and New York.
The result of those talks, as well as other recent developments since the presentation of the budget, he said, would be among the subjects addressed in the Government/Private Sector discussions.
The Jamaican dollar broke the $65 to US$1 barrier in trading against the US dollar yesterday, losing 69 cents in value. The average selling rate was $65.09 to the US dollar, preceded by a rate of $64.40 on Wednesday which, in turn, was down $1.75 cents from the Tuesday rate. The currency has lost $4.36 in value so far this week and $14.12 this year, in trading against the US currency.
In terms of the Canadian dollar the average selling rate of the local currency was $47.13 to C$1. An average selling rate of $104.08 was obtained in trading against the British pound. The exchange rate fell as low $69.50 to the US dollar during trading yesterday.
Speaking at a meeting of the National Development Council at his office on Wednesday, the Prime Minister stated that the Government was closely monitoring developments in the local currency market and continued to examine the effect of the intervention of the Bank of Jamaica, implications for the fiscal budget as well as its effect on the cost of living.
Mr. Patterson said the outcome of the discussions would be presented to Cabinet on Monday for decision on actions to be taken.
As chairman of the Development Council, he had recently invited the private sector to name three representatives to the Council and extended a special welcome to the representatives - William McConnell, Colin Steele and Richard Byles - who were attending their first meeting. Mr. Patterson said that he anticipated their constructive engagement in the work of the Council.
The Development Council is an inter-ministerial body chaired by the Prime Minister and is composed of several permanent ministerial representatives including the Ministers of Development, Finance and Planning, Agriculture, Industry and Tourism, and Commerce, Science and Technology. It also includes the Governor of the Bank of Jamaica, the head of the Planning Institute of Jamaica, the Development Bank of Jamaica and the president of JAMPRO.
