The Business Lounge Individuals show concern for the weakening Jamaican Dollar by Meisha-Gay Mattis
The Jamaica dollar has been declining steadily against all major foreign currencies. For most individuals it is déjà vu all over again, but now more than ever it is getting serious. Our imports are getting more expensive, while or exports are becoming cheaper which will eventually worsen our trade deficit.
She also stated that her children’s Orthodontics treatment cost U$7,000, of which she pays U$150 monthly and to now multiply the remainder of U$1650 by JMD85 is strenuous.
Your Money caught up with a small business owner and a few individuals, as we focus on the Jamaican exchange rate against the US exchange rate. The dollar closes at JMD 85.24 to U$1 on January 27, 2009.
Russell Welsh -Jamaica Money Market Brokers (Customer Service Representative)
Samuel Folkes – Integrated Marketing Jamaica Limited “The current situation has its negatives and also its positives. My prices are quoted in US dollar, so when the US dollar strengthens against the Jamaica dollar, I stand a great possibility of gaining. One the other hand if I’m tied to a specific contract I stand the chance of losing if the US dollar strengthens because my contract cannot be adjusted to reflect the change in the exchange rate,” said Mr. Folkes. “The bottom line is that this fluctuation in the dollar creates a level of uncertainty in the business sector, especially for those who conduct transactions in US dollar on a daily basis,” he further explains.
“It appears as if the country has given up and cannot produce anything for itself resulting in a high import economy. If we depend so strongly on the US, every move their dollar makes affects my everyday life from my education to simply having fun”, say Russell. He believes that the only way Jamaica can fight the appreciating US dollar is to start producing for ourselves and stop purchasing Kellogg and Doritos and support “For Jamaicans by Jamaicans”.
Latoya Smith – First Caribbean International Bank Jamaica (Client Service Representative) “On a personal note, I have been contemplating as to whether I should discontinue using my US credit card because I now have to pay more Jamaican dollar to buy one US dollar, and I am also getting the same amount of goods and services when I shop online at US stores for more. Put simple, it is basically becoming more expensive when I use my US credit card”, said the Client Service Representative while laughing. Stacy-Ann Chaffatt “The sliding dollar hits close to home as I am currently feeling the pinch not only for the past couple of months, but for the last three years. I can recall three years ago when my two children got braces, the exchange rate was JMD$60 to 1U$ and presently the exchange rate is JMD$85 to 1U$,” explained the disgruntled parent. 3
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