Jamaica dollar devaluation not over yet, IMF boss asserts

(Jamaica Gleaner) KINGSTON, Jamaica: The Head of the International Monetary Fund (IMF), Christine Lagarde has given the clearest indication that there will be a further devaluation of the local currency.

Christine Lagarde
Christine Lagarde

“There is still a little way to go, not much,” said Lagarde at a luncheon in New Kingston yesterday.

But she warned that keeping inflation under control is critical to reducing net devaluation.

“Governor, when you are at the mercy of having to get rid of your reserves in order to defend currency, I am sure it must have occurred to you that Jamaica was bleeding and that it was not good for the country to actually spend so much of its reserves to defend a currency which was clearly not valued at the right level,” she said.

Her reference to governor was to Brian Wynter, head of the central bank.

The Jamaican dollar has fallen from J$99.33 to US$1 on May 1, 2013, when the IMF agreement was inked, to J$112.03 to US$1 at the end of trading on Thursday.

Lagarde who is in Jamaica on a two-day visit says the slide had to happen because local currency was overvalued.

But Lagarde said domestic production is beginning to replace imports for some agricultural goods, production is going up and foreign direct investment is increasing.

“The competitiveness of Jamaica is on its way back,” Lagarde asserted.

Latest in Regional News

default placeholder

T&T bankers frustrated over delay in FATCA legislation

(Trinidad Guardian) Bankers are frustrated over the long awaited passage and implementation of legislation for T&T to become FATCA (Foreign Account Tax Compliance Act) compliant.

Former Prime Minister Patrick Manning

Manning diagnosed with cancer

(Trinidad Express) Former Prime Minister Patrick Manning has been diagnosed with Acute Myeloid Leukemia, an aggressive form of bone marrow cancer.

default placeholder

Barbados court rules against fingerprinting

(Barbados Nation) Plans to make it mandatory for Barbadians to be fingerprinted when leaving or entering the island’s air and sea ports have been deemed unconstitutional.

default placeholder

U.S. expands scope of U.N. bribe case against Macau billionaire

NEW YORK, (Reuters) – A new indictment against a Macau billionaire developer accused of bribing a former U.N. General Assembly president says he also provided benefits to one or more U.N.

default placeholder

Brazil police raid pulpmaker controlled by billionaire Batista family

BRASILIA, (Reuters) – Brazilian police yesterday raided offices of pulpmaker Eldorado Celulose controlled by the billionaire Batista family, a company spokesman said, in the latest stage of the country’s biggest-ever corruption investigation.

default placeholder

Jamaica not preparing to leave Caricom, says Holness

(Jamaica Observer) Prime Minister Andrew Holness on Tuesday launched his promised Caricom Review Commission and immediately dismissed speculation that Jamaica is preparing to pull out of the regional economic bloc.

A basket of local onions is on display beside Don McGlashan, director general in the Ministry of Industry, Commerce, and Agriculture, in Old Harbour, St Catherine.

Jamaican farms aiming for 40% of onion market

(Jamaica Gleaner) Three years ago, Jamaica was producing just six per cent of the onions consumed locally. Now it’s meeting 10-12 per cent of demand, but that’s still around a quarter of the levels agriculture officials aim to reach.

default placeholder

‘Jamaica is T&T’s ATM’ – Mahfood slams one-way CARICOM benefits

(Jamaica Gleaner) “Jamaica has been the ATM for Trinidad and Tobago.” That’s the claim from the Private Sector Organisation of Jamaica (PSOJ), which has indicated that it wants Jamaica to use the upcoming Caribbean Community (CARICOM) Heads of Government Summit to push forcefully for changes that will “rebalance trading relationships” in the 15-member group.

Comments

About these comments

The comments section is intended to provide a forum for reasoned and reasonable debate on the newspaper's content and is an extension of the newspaper and what it has become well known for over its history: accuracy, balance and fairness. We reserve the right to edit or delete comments which contain attacks on other users, slander, coarse language and profanity, and gratuitous and incendiary references to race and ethnicity.

Stay updated! Follow Stabroek News on Facebook or Twitter.

Get the day's headlines from SN in your inbox every morning: