PNP pressures Govt over capital controls

[Lazie]

Jamaica Observer

Posted: 2/16/2009 10:59:33 AM
THE Opposition People’s National Party (PNP) is calling on the Government to confirm whether or not it is considering reintroducing capital controls, meaning restrictions on transfers of foreign exchange from Jamaica to overseas, as a measure to reduce demand for foreign currency in Jamaica.

Citing a report by the Reuters agency, the PNP said that Karl Samuda, Minister of Industry, Investment and Commerce, had replied "We have to" when asked by the reporter if Government would consider introducing capital controls.This could have damaging affects for the economy, said the statement from PNP spokesmen Omar Davies, finance, and Mark Golding, industry and commerce.

"Having successfully liberalised the foreign exchange market and eliminated the black market in the 1990s, the Opposition regards any consideration of reintroducing capital controls an extremely retrograde step, and an act of bad faith towards Jamaican investors who have retained their capital in Jamaica. Any such measure will without doubt cause panic among investors and result in rapid capital flight, strengthening the resurgence of the black market and the instability in the foreign currency market," they said.

[Lazie]

Samuda dismisses PNP statement as 'abject foolishness'



Tuesday, February 17, 2009

Industry Minister Karl Samuda last night castigated the Opposition People's National Party (PNP), describing the party's criticism of his capital control statement in London as "abject foolishness".
Recalling his strong stance in favour of removing foreign exchange controls in the 1990s, Samuda questioned how the PNP could interpret as exchange control his call in an interview with a wire service reporter for controls on the outflow of capital.
"What I was obviously saying is that we need to control the flow of capital where it is putting pressure on the dollar. I made it clear that there is need for the commercial banks and the investment community which repatriates funds, to have dialogue with the Bank of Jamaica and the Ministry of Finance on how to control that flow," Samuda insisted.
In a news release yesterday, the PNP called on the Government to "state whether or not it was considering reintroducing capital controls, meaning restrictions on transfers of foreign exchange from Jamaica to overseas, as a measure to reduce demand for foreign currency in Jamaica".
The party cited a Reuters report out of London where Samuda was interviewed at the Jamaica-United Kingdom Investment forum earlier this month. The report said:
"Jamaica may introduce capital controls to curb further sharp falls in its currency as the central bank lacks sufficient reserves to support it, Jamaica's industry and investment minister said."
In its release, the PNP said it "regards this statement by the minister as most ill-advised and reckless, and potentially very damaging to both trade credit arrangements for Jamaican businesses, and also to the liquidity position of the local financial sector".
"Having successfully liberalised the foreign exchange market and eliminated the black market in the 1990s, the Opposition regards any consideration of reintroducing capital controls an extremely retrograde step, and an act of bad faith towards Jamaican investors who have retained their capital in Jamaica."
But hitting back in an interview with the Observer, Samuda asked: "How on earth could anyone interpret my statement to mean foreign exchange or legislative controls? That is abject foolishness."
He said one way to control the flow of capital was for users to whom credit facilities were available, to utilise them, instead of going to the market for foreign exchange.
"We are talking about controls by means of monitoring and encouraging the use of these credit facilities. We are talking about a dialogue that is needed between the investment community and the commercial banks and the central bank and the Ministry of Finance to control the flow of foreign exchange, not to stop it," said Samuda.
"In any event, a call for foreign exchange controls, could not be mine. That would rightly be the prerogative of the minister of finance or the prime minister," Samuda said. "I think someone was looking for a story."

http://www.jamaicaobserver.com/news/...OLISHNESS_.asp

[Muadib]

How a blind man gwine give a one-eye man directions ??

Are these comrades for real ?

LOL !!

[Mosiah]

Put Samuda right up there with AJ, KD and Bobby. They are cut from the same expletive-cloth. All loud, contentious, arrogant and vacuous!

All the international publications are saying the same thing the PNP is saying, based on Samuda's very own words. But him know who fi frighten.