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.


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.

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

Most Read This Week

  1. Ramesh Manbodh

    Man beaten with bat passes away

  2. Bibi Shareema (left) and her mother Bibi Shameela in
happier times

    Greenwich Park woman died 44 days after brutally stabbed by ex-partner

  3. Bharrat Jagdeo

    Meeting of Cabinet at GDF HQ pilloried by Jagdeo

  4. Fast food lovers inside KFC yesterday

    KFC back in business

  5. The building housing the home and grocery

    Bandits invade Alness businessman’s house, shots fired

  6. Workers from the Mayor and City Council removing the pools (Photo by Keno George)

    City Hall removes pools after Sheriff St stand-off

  7. Alimudeen Gobin’s demolished house

    Violent storm lashes No. 19 Village

  8. The ganja found in Prashad Nagar (Police photo)

    Police find 52 lbs of ganja in Prashad Nagar house

  9. tensions

    Player tensions with WICB reaching breaking point: Sir Viv

Recommended For You