Bank of Jamaica Not Concerned about Weakening Dollar

Governor of the Bank of Jamaica (BOJ), Brian Winter says the recent devaluation of the Jamaican dollar is no cause for alarm.

Speaking yesterday (May 13th)  at the weekly Jamaica house press briefing, Mr Wynter  stated that the recent decline in the value of the  dollar was not cause for concern. The Jamaican dollar ended trading yesterday at $100.78 to US $1.00. 

Since the dollar crashed through the psychological $100 Jamaican to US $1.00 mark last week, there have been numerous statements of concern about the Jamaican economy and how people will cope.

There have also been calls for the government to prevent the continued depreciation of the dollar. The dollar has lost nearly seven percent of its value since this year.

However, Governor Brian Wynter said  there was no need for alarm.  He said the government’s economic programme had taken into consideration some changes in the exchange rate and also inflation that may result from it. Mr Wynter stated that the  depreciation of the rate so far was still within the BOJ’s expectation.

He added that the level of inflation and its potential impact on prices in the economy are also within the boundaries of what the bank was forecasting.  The central bank governor  said changes in  the exchange rate have been factored into  government’s overall programme.

Mr Wynter added that  the depreciation was also beneficial to persons seeking to penetrate export markets as it gives them a price advantage. The  governor said the central bank will be keeping a close eye on the potential further impact on the domestic economy.

Mr Winter went on to state that the concerns of the public were by no means unfounded and completely understandable.

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