Opposition calls for action to calm foreign exchange market

The Opposition People’s National Party is calling for the Minister of Finance and the Governor of the Bank of Jamaica to immediately address the cause of the ongoing rapid devaluation of the Jamaican dollar. 

According to the Opposition Spokesman for Finance Mark Golding, the local foreign exchange market has been plagued by a severe shortage of US dollars over the past three weeks.

Golding argued that for this to be happening during the height of the Winter Tourist Season is unusual and perplexing.

“There has been no clear and definitive explanation from either the Government or the BOJ as to what is causing this shortage of US Dollars and the rapid devaluation. There were dealers in the market today (January 31, 2019 ) selling at J$138 to US$1.00 when just three weeks ago the rate was in the J$127 range. Businesses and consumers are anxious and need to know what is going on,” Golding said in a statement.
 
He continued, “Businesses are unable to find the foreign exchange to pay their overseas suppliers, and this is adversely affecting their credit arrangements. And at these exchange rate levels, prices of imported goods can be expected to adjust, to the detriment of consumers.”
 
The opposition spokesman argued that this is happening again after the BOJ has recently announced that Jamaica has breached the lower end of the Government’s inflation target, for the second time this fiscal year.

“It is a repetition of what took place in June/July last year. In the absence of any explanation from the monetary authorities, I once again I ask the question –Are these repeated bouts of exchange rate volatility what Jamaica must expect as an unwelcome side effect of the BOJ adopting inflation targeting as its primary objective?”

We want to hear from you! Send us a message on WhatsApp at 1-876-499-0169, email us at editors@gleanerjm.com or onlinefeedback@gleanerjm.com.