"No need to worry" says Central Bank on depreciation of local currency

The Central Bank is again telling the public there is no need to worry about the depreciation of   the Jamaican dollar against the US currency.

Speaking yesterday on TVJ's Smile Jamaica, Deputy Governor for the Research & Economic programming division at the Bank of  Jamaica, Wayne Robinson, said at the moment the BoJ is not concerned about the exchange rate. 

He said the BOJ is monitoring the issue and will decide whether to take action.

“When we will become concerned, it’s under two conditions. When we see that the rate of movement will have an impact on inflation. Also if we see a situation where the foreign exchange market itself stops functioning - so you’ll go to your bank and the bank will say there are no US dollars. That’s when we will start to act.”

Robinson adds that the exchange rate is no longer the main factor in the price of  goods and services.

“What we do as policy makers is to look at prices on average. So the statistical institute of Jamaica , every month, they survey over 500 prices right across the country and they compile an average price in the economy and that is what we look at as policymakers. So you could have some prices going up above the average and you could have some prices going down as well,” Robinson said. 

On Monday -  the Jamaican dollar has sunk to a new low against the U.S. currency. 

The greenback is now being sold for an average J$137. 45 cents.
Since the start of  the year, the Jamaican dollar has devalued by about 9 per cent.

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