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JA dollar under renewed pressure
Thursday, 09 April 2009
There are signs that the Jamaican dollar is coming under renewed pressure with some foreign exchange dealers now selling the American currency for a record high of $90.
The Bank of Jamaica's summary of foreign currency trading on Wednesday revealed that $90 was the highest rate reported for the US currency.
$89 was the average sale price.
The slide coincided with the Bank of Jamaica's announcement that the rate on its one year Certificate of Deposit had been reduced by 1.3 percentage points.
The new rate is 22.67%, down from 24%.
The Central Bank hiked interest rates late last year as part of measures to halt the rapid slide in the value of the Jamaican dollar.
And the Jamaica Manufacturers Association (JMA), says it is encouraged by the decline in the rate on the BoJ's Certificate of Deposit.
President of the Association, Omar Azan, says it is a step in the right direction.
"And as business people operating within Jamaica we need to have much lower interest rates in order to compete as manufacturers, within the tourism industry, in the agricultural sectors, even distributors," said Mr. Azan.
"It is very difficult to operate under the high interest rate regime that is currently in place and it's a step in the right direction. I jut hope and wish it would go down a lot quicker," he continued.
Thursday, 09 April 2009
There are signs that the Jamaican dollar is coming under renewed pressure with some foreign exchange dealers now selling the American currency for a record high of $90.
The Bank of Jamaica's summary of foreign currency trading on Wednesday revealed that $90 was the highest rate reported for the US currency.
$89 was the average sale price.
The slide coincided with the Bank of Jamaica's announcement that the rate on its one year Certificate of Deposit had been reduced by 1.3 percentage points.
The new rate is 22.67%, down from 24%.
The Central Bank hiked interest rates late last year as part of measures to halt the rapid slide in the value of the Jamaican dollar.
And the Jamaica Manufacturers Association (JMA), says it is encouraged by the decline in the rate on the BoJ's Certificate of Deposit.
President of the Association, Omar Azan, says it is a step in the right direction.
"And as business people operating within Jamaica we need to have much lower interest rates in order to compete as manufacturers, within the tourism industry, in the agricultural sectors, even distributors," said Mr. Azan.
"It is very difficult to operate under the high interest rate regime that is currently in place and it's a step in the right direction. I jut hope and wish it would go down a lot quicker," he continued.