Prime Minister Andrew Holness is suggesting a foreign exchange hedge fund to help businesses manage the risks associated with a fluctuating US dollar market.
Over the past year, the Jamaican dollar has been rising and falling against the US dollar, with some people and businesses who’ve traditionally invested in US dollars, losing money when the local currency strengthens.
A hedge is an investment to reduce the risk of adverse price movements in an asset, such as foreign currencies.
Mr. Holness says this presents a business opportunity to help people assess and manage their risk.
Prime Minister Holnesswas speaking this morning at the Mona School of Business and Management’s CEO Breakfast Forum, on the topic “Strategic Digital Leadership”.