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Tuesday, 11 November 2008
Industry Minister Karl Samuda has joined those expressing alarm at the rapid fall in the value of the Jamaican dollar and the negative effect this could have on prices especially for food items.
Concern has been expressed in some quarters that the slide in the value of the local currency against its US trading partner could lead to food prices soaring instead of declining in coming weeks.
On Monday, the Jamaica Chamber of Commerce (JCC) called on the authorities to intervene quickly to halt the depreciation of the dollar.
Now Mr. Samuda is admitting that the matter is cause for concern.
The Minister says he is worried that the problems facing the foreign currency market will further destabilise prices.
According to him, his ministry is closely monitoring the situation.
"This places additional pressure on us and therefore counteracts the reduction in commodity prices worldwide which normally has enabled our prices to reduce in a more significant way but this now, has some impact now the rate of reduction," he said.
In the past month, the value of the Jamaican dollar has declined by 5% against the American currency.
The US dollar is now being sold for as high as J$78.
The slide continues despite efforts by the authorities to reduce demand pressures by increasing the supply of US dollars in the financial system.
http://www.radiojamaica.com/content/view/13146/26/
Industry Minister Karl Samuda has joined those expressing alarm at the rapid fall in the value of the Jamaican dollar and the negative effect this could have on prices especially for food items.
Concern has been expressed in some quarters that the slide in the value of the local currency against its US trading partner could lead to food prices soaring instead of declining in coming weeks.
On Monday, the Jamaica Chamber of Commerce (JCC) called on the authorities to intervene quickly to halt the depreciation of the dollar.
Now Mr. Samuda is admitting that the matter is cause for concern.
The Minister says he is worried that the problems facing the foreign currency market will further destabilise prices.
According to him, his ministry is closely monitoring the situation.
"This places additional pressure on us and therefore counteracts the reduction in commodity prices worldwide which normally has enabled our prices to reduce in a more significant way but this now, has some impact now the rate of reduction," he said.
In the past month, the value of the Jamaican dollar has declined by 5% against the American currency.
The US dollar is now being sold for as high as J$78.
The slide continues despite efforts by the authorities to reduce demand pressures by increasing the supply of US dollars in the financial system.
http://www.radiojamaica.com/content/view/13146/26/
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