Despite an assertion by Bank of Jamaica (BoJ) Governor, Brian Wynter, the Jamaica Manufacturers' Association (JMA) said its members might not end up seeing the full benefits of the depreciation of the Jamaican dollar. Stating that there was no need to panic, the BoJ Governor on Thursday said the exchange rate movement was beneficial to those seeking to penetrate export markets as it gave them a price advantage.
But speaking with RJR News Thursday night, Brian Pengelley, JMA president, said this might not generally be the case for members of the manufacturing sector who export. Mr. Pengelley said on the contrary they could be left at a disadvantage.
“The principle is absolutely correct; the interest rate devalues, the exchange rate devalues so when you are selling something you get more in US dollars. But the beginning of this whole supply chain starts with the cost of manufacturing, because the devaluing dollar raises the cost of your raw materials and your inputs, so there is a real challenge to manufacture a product competitively that you then can sell on a global market,” said Mr. Pengelley.