Fix The Dollar Says Shaw The Opposition Spokesman on Finance, Audley Shaw, believes it’s time for a fixed exchange rate. Yesterday the dollar traded at $100.14 to US$1. Shaw says the exchange rate could be fixed at $100. However, he says such a decision would have to be taken based on discussions with stakeholders in the foreign exchange market who influence supply and demand. The former finance minister also notes that other policies that stimulate economic growth must also be implemented coupled with the fixing of the exchange rate. Shaw pointed out that it was not necessary to fix the exchange rate during his tenure as finance minister as the previous Jamaica Labour Party government kept the dollar stable for over two years. He says his government also brought in enough foreign exchange to prevent a shortage. Shaw has outlined several measures he says are aimed at restoring investor confidence in light of the continued slide in the Jamaican dollar. He believes the fast tracking of the programme of accessing low cost loans and grants from the Inter-American Development Bank, the World Bank and the European Union could also help in stabilising the Jamaican currency. He says the government must also review some of the recently imposed tax measures, ramp-up the retooling programme for energy efficiency and the process of providing access to credit and micro-financing for small businesses. Shaw is also casting doubt on whether the government is in a position to access early draw-downs from multilateral institutions. He says it is time for the Prime Minister to intervene and has warned against an over-reliance on the IMF Agreement as a substitute for the sensible, practical action that is needed from the Government.
Posted on: Tue, 11 Jun 2013 15:50:09 +0000
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