Tue | May 26, 2015

Update: Economists weigh in on black market talk

Published:Tuesday | November 13, 2012

Financial analyst, Dennis Chung says there’s no evidence to suggest the black market for foreign exchange is re-emerging.



Earlier today the Jamaica Labour Party spokesperson on finance, Audley Shaw said there are signs this is happening.



He stated that the daily uptake now stands at $20 million down from $40 million.



However, Chung says it will be difficult for this parallel market to exist and flourish because Jamaica has a floating exchange rate.



A floating rate means the currency’s value is allowed to move up and down based on market forces.



Chung says given this scenario, there’s no need for anyone to go on the black market for better rates.



However, economist, Dr Davidson Daway feels the black-market never ceased to exist, saying it’s hypocritical to say it’s re-emerging.



He says until regulations are put it place it will continue to be an alternative.



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