THE EDITOR, Sir:

In recent headlines, Aubyn Hill said, "Default or devalue." Edward Seaga says, "Peg the exchange rate to the US dollar and don't let IMF dictate terms of borrowing."

Derick Latibeaudiere, former governor of Bank of Jamaica, says that changing the exchange-rate policy will reap little or no dividend for the country. A fixed exchange rate with the shortage of US dollars will create a black market and a two-tier exchange rate. US dollarising is the ultimate answer, but would take more time than the present crisis allows.

None of the above solves the problem of importing more than we export. The solution would be to peg imports. As complex as that will be, there is no other immediate action that could help. In pegging imports, we could place a quota on motor cars and impose a maximum value.

To encourage local production, we could remove GCT from all agricultural products and manufactured food. We could grant an income tax waiver on the food industry, as we have done with the bauxite levy for UC Rusal's Windalco.

As the saying goes, we have to bite the bullet.

KEITH HOBBINS

khobbins@cwjamaica.com