Friday, March 29, 2024

Jamaica: Dollar slide worries private sector

Date:

Share post:

KINGSTON,Jamaica, Dec. 6, CMC -As the value of the Jamaican dollar continues decline, members of the private sector have voiced concern about the possible implications for the country.
On Wednesday, the local currency sunk to its lowest value with more than J$92 required to purchase one US dollar.
At the end of the day, the US dollar was being sold an average J$92.05 but was being sold for as high as J$95 by some traders. One year ago the average rate was J$86.70.
The Jamaica Chamber of Commerce, (JCC), is predicting a further slide in the dollar as the country awaits word on a new deal with the Government and the International Monetary Fund, (IMF).
According to JCC president, Francis Kennedy, this has left business owners in uncertainty and merchants are trying to stave off financial losses by paying their suppliers earlier than usual.
He said stemming from this,  Jamaicans should brace for higher prices .
“Higher prices are coming because of the dollar slide. Until such time as we get an IMF agreement settled down, the whole foreign exchange system …the dollar will continue to slide…we have a free market and there is speculation whether we like it or not” he said.
Meanwhile the Opposition Jamaica Labour Party’s (JLP) spokesman on Finance, Audley Shawhas also expressed alarm at the continuing slide in the value of the Jamaican dollar.
He who said this  has wide ranging implications for consumers as well as the economy also pointed to Jamaica’s debt. He said the amount owed by the country to its creditors is set to further balloon.
“It(debt) will also be increasing because half of the stock of debt is denominated in US dollars…so every time there is a valuation, the nominal stock of total debt increases…not necessarily because more money has been borrowed, but because the exchange rate is slipping,” Shaw said.     
 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

No decision yet on Lester Vaughan School

A firm decision has not yet been made regarding when the Lester Vaughan School will be reopened. Following a...

BDF to conduct simulation exercise on April 2 & 3

The Barbados Defence Force (BDF) will conduct a Mass Casualty Simulation Exercise from Tuesday, April 2, to Wednesday,...

Barbadians reminded to file taxes online as filing season starts

The Barbados Revenue Authority (the BRA) is advising that tax filing season for 2023 begins on April 1 this...

Minister Abrahams’ statement on Ismail Patel’s passing

Below is the full statement by Minister of Home Affairs and Information, Wilfred Abrahams: I was saddened to...