The Jamaica Manufacturers Association, JMA, has inked a historic Memorandum of Understanding that will see the group benefiting from a special foreign exchange window.
Manufacturers have been experiencing difficulties sourcing foreign exchange since last year, as a result of the rapid decline of the Jamaican dollar and conditions of the International Monetary Fund agreement.
The MOU was signed with the Jamaica National Building Society, JNBS today.
The JMA/JNBS Special Foreign Exchange Window targets registered small and medium sized members of the JMA and gives eligible members preferential access to foreign currency purchases.
The JMA says it’s reached out on a number of occasions for a special facility to meet the sector’s foreign currency demand.
That call was answered by the Jamaica National Building Society when a JMA/JNBS Special Member Foreign Exchange deal was brokered.
Beginning August 4, JNBS will set aside 10-million US dollars or just over 1-billion Jamaican dollars per month until December 21 for small and medium-sized manufacturers.
JMA President, Brian Pengelley says the deal is a significant push for the manufacturing sector.
Mr. Pengelley says while the special arrangement will help to ease the problem of limited or unavailable foreign exchange on the market, the continuing devaluation of the Jamaican dollar still poses a challenge to their businesses.
The foreign currency rate for currency accessed under the window will be market determined and influenced by market conditions at the time of transaction.
JNBS will provide discounts ranging from 20 cents to 50 cents per US dollar depending on the volume of purchase and range of banking arrangements between the JNBS and eligible entities.
General Manager of the JNBS, Earl Jarrett, says the deal is important as it allows Jamaican exporters to pay their bills on time.
