Audley Shaw says BOJ’s Intervention in the FX market is vindication for the Opposition

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Opposition Spokesman on Finance, Audley Shaw, has described the intervention in the local foreign exchange market by the Bank of Jamaica, as a vindication of the stability policy promoted by the parliamentary Opposition.

The intervention by the Central Bank follows reports on Wednesday that the Jamaican dollar was selling for as low as 117-to-one US dollar.

The BOJ intervened in the market to prevent what it calls ‘disorder’ and to allow market forces to determine the value of the local currency against its foreign counterparts.

Mr. Shaw says he’s been warning the government for months that devaluation was hurting businesses in Jamaica, with undeniable reductions in exports.

The Opposition Spokesman said while the intervention is a good step, it does not go far enough.

Mr. Shaw is asserting that this temporary patch for the problem will not last.

He says the government must state its policy direction with a view to creating a stable and predictable environment for both local and international investors.

According to Mr. Shaw, the continued policy of depreciation will not help to take the economy out of its sluggish state.

Members of the private sector have endorsed the move by the Bank of Jamaica to intervene in the local foreign exchange market.

The Central Bank this morning dipped into its reserves and sold foreign currency to licensed traders, so they could then satisfy the demand from businesses and individuals.

President of the Jamaica Manufacturers Association, Brian Pengelley, who has long complained of the devastating consequence of the constant devaluation of the local currency, says the intervention by the BOJ is timely.

The Past President of the Jamaica Exporters Association, Andrew Collins, says the ongoing disorder in the currency trading market required the intervention of the BOJ.