Economist Downplays Dollar Devaluation Worries

Economist Dr. Damien King is seeking to allay concerns over what appears to be a depreciation of the local currency against the benchmark US dollar.

The Jamaican dollar ended trading yesterday at $131.58 to one US dollar.

Just last month the exchange rate stood at $124.01.

Dr. King says today’s average exchange rate is similar to what obtained a year.

He says it’s unlikely Jamaica will have a depreciation rate above two percent.

The Bank of Jamaica has a system in place which has been credited with bringing the nation’s exchange rate down from record highs.

The Foreign Exchange Intervention and Trading Tool or B-FIXITT was implemented last July.

In a recent statement, the Opposition People’s National Party raised concerns about what it labelled as a ‘slide in the currency’.

The PNP said it was alarmed the BOJ is unable to purchase the necessary amounts of the currency.

The PNP also said that was an indication the market was holding back in anticipation of what it described as a further slippage in the value of the Jamaican dollar.

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