Bank of Jamaica: Depreciation of Jamaican Dollar will not continue

The rapid depreciation in the value of the Jamaican dollar over the past three weeks will not continue in that manner over the rest of the 2013-2014 fiscal year, Bank of Jamaica Governor Brian Wynter assured yesterday.

Continuing depreciation of the Jamaican dollar have weakened domestic demand, reduced revenues and profits, leading to a drop in business confidence to the lowest level since 2009.

Wynter explained that Jamaica was facing a balance of payments problem, and as a result, last fiscal year, the current-account deficit was 12.4 percent of gross domestic product, or US$1.5 billion to US$2 billion.

The country’s economic program is now focused on reducing debt. Under the program, the the Bank Of Jamaica governor said, the exchange rate has to be adjusted as part of the effort to improve competitiveness for Jamaican businesses.

Read more: Jamaica Gleaner