Was the devaluation of the Ja dollar a

[Skeng DX]

'de facto prior action' to an IMF agreement?

Officials from the International Monetary Fund (IMF), have addressed concerns about the devaluation of the Jamaican dollar.

In response to a question about concerns that the devaluation of the Jamaican dollar could have a negative impact on the economy, Gian Maria Miles-Ferretti, Deputy Director of the Western Hemisphere Department, said there may be a positive outcome from what is happening.


“It is very important for the Jamaican economy to increase domestic production and exports, if you look at what has happened in Jamaica last year, you see very little growth and very large current account deficit. We think that this depreciation of the exchange rate is going to help stimulate exports” said Miles-Ferretti during an IMF Western Hemisphere Department press briefing in Washington DC on the weekend.



Jamaica hopes to have IMF approval of a 4 year Extended Fund Facility, after the Spring Meetings. That approval will unlock over US$2 billion in external funding from the IMF, World Bank and Inter American Development Bank (IDB) over the next four years.

Last Friday, Finance Minister, Dr Peter Phillips, left the country to lead a Jamaican delegation to the spring meetings of the IMF.

The IMF/World Bank Spring Meetings are to be held from April 19 to 22

[World Fan]

Devaluation could have a positive outcome

http://rjrnewsonline.com/local/jamai...s-imf-official

"Jamaican dollar devaluation could have a positive outcome" - says IMF official

7:49 am, Sun April 21, 2013

Officials from the International Monetary Fund (IMF), have addressed concerns about the devaluation of the Jamaican dollar.

In response to a question about concerns that the devaluation of the Jamaican dollar could have a negative impact on the economy, Gian Maria Miles-Ferretti, Deputy Director of the Western Hemisphere Department, said there may be a positive outcome from what is happening.


“It is very important for the Jamaican economy to increase domestic production and exports, if you look at what has happened in Jamaica last year, you see very little growth and very large current account deficit. We think that this depreciation of the exchange rate is going to help stimulate exports” said Miles-Ferretti during an IMF Western Hemisphere Department press briefing in Washington DC on the weekend.


Jamaica hopes to have IMF approval of a 4 year Extended Fund Facility, after the Spring Meetings. That approval will unlock over US$2 billion in external funding from the IMF, World Bank and Inter American Development Bank (IDB) over the next four years.

Last Friday, Finance Minister, Dr Peter Phillips, left the country to lead a Jamaican delegation to the spring meetings of the IMF.

The IMF/World Bank Spring Meetings are to be held from April 19 to 22

[Rockman]

The only consistent thing about our dollar is it will continue to devaluate,where is the evidence that makes us better?
It is all crap, akin to our acclaimed economists being well schooled in voodoo economics,they probably can recite backwards all the economic books designed to strengthen another country at the expense of theirs.
They never should just hug what is being taught but question those very things.

[Sir X]

No advantage whatsoever , every thing is bought and sold by the us value.

[World Fan]

Fundamental Factors That Affect Currency Values

http://www.x-rates.com/

http://www.investopedia.com/slide-sh...artner=yahoofx

http://finance.yahoo.com/q?s=USDJPY=X

Fundamental Factors That Affect Currency Values

http://finance.yahoo.com/education/c...encies_markets


Fundamental Factors That Affect Currency Values
Justin Kuepper

Those trading in the foreign-exchange market (forex) rely on the same two basic forms of analysis that are used in the stock market: fundamental analysis and technical analysis. The uses of technical analysis in forex are much the same: price is assumed to reflect all news, and the charts are the objects of analysis. But unlike companies, countries have no balance sheets, so how can fundamental analysis be conducted on a currency?

More from Investopedia.com:

• In Pictures: Top 10 Forex Trading Rules

• In Pictures: Break Into Forex In 12 Steps

• The Greatest Currency Trades Ever Made

Since fundamental analysis is about looking at the intrinsic value of an investment, its application in forex entails looking at the economic conditions that affect the valuation of a nation's currency. Here we look at some of the major fundamental factors that play a role in the movement of a currency.

Economic Indicators
Economic indicators are reports released by the government or a private organization that detail a country's economic performance. Economic reports are the means by which a country's economic health is directly measured, but do remember that a great deal of factors and policies will affect a nation's economic performance.

These reports are released at scheduled times, providing the market with an indication of whether a nation's economy has improved or declined. The effects of these reports are comparable to how earnings reports, SEC filings and other releases may affect securities. In forex, as in the stock market, any deviation from the norm can cause large price and volume movements.

You may recognize some of these economic reports, such as the unemployment numbers, which are well publicized. Others, like housing stats, receive little coverage. However, each indicator serves a particular purpose, and can be useful. Here we outline four major reports, some of which are comparable to particular fundamental indicators used by equity investors:

Gross Domestic Product (GDP)

GDP is considered the broadest measure of a country's economy, and it represents the total market value of all goods and services produced in a country during a given year. Since the GDP figure itself is often considered a lagging indicator, most traders focus on the two reports that are issued in the months before the final GDP figures: the advance report and the preliminary report. Significant revisions between these reports can cause considerable volatility. The GDP is somewhat analogous to the gross profit margin of a publicly traded company in that they are both measures of internal growth.



Retail Sales

The retail-sales report measures the total receipts of all retail stores in a given country. This measurement is derived from a diverse sample of retail stores throughout a nation. The report is particularly useful because it is a timely indicator of broad consumer spending patterns that is adjusted for seasonal variables. It can be used to predict the performance of more important lagging indicators, and to assess the immediate direction of an economy. Revisions to advanced reports of retail sales can cause significant volatility. The retail sales report can be compared to the sales activity of a publicly traded company.

Industrial Production

This report shows the change in the production of factories, mines and utilities within a nation. It also reports their 'capacity utilizations', the degree to which the capacity of each of these factories is being used. It is ideal for a nation to see an increase of production while being at its maximum or near maximum capacity utilization.

Traders using this indicator are usually concerned with utility production, which can be extremely volatile since the utilities industry, and in turn the trading of and demand for energy, is heavily affected by changes in weather. Significant revisions between reports can be caused by weather changes, which in turn, can cause volatility in the nation's currency.

Consumer Price Index (CPI)

The CPI is a measure of the change in the prices of consumer goods across over 200 different categories. This report, when compared to a nation's exports, can be used to see if a country is making or losing money on its products and services. Be careful, however, to monitor the exports - it is a focus that is popular with many traders because the prices of exports often change relative to a currency's strength or weakness.

Some of the other major indicators include the purchasing managers index (PMI), producer price index (PPI), durable goods report, employment cost index (ECI), and housing starts. And don't forget the many privately issued reports, the most famous of which is the Michigan Consumer Confidence Survey. All of these provide a valuable resource to traders, if used properly.

So, How Are These Used?
Since economic indicators gauge a country's economic state, changes in the conditions reported will therefore directly affect the price and volume of a country's currency. It is important to keep in mind, however, that the indicators discussed above are not the only things that affect a currency's price. There are third-party reports, technical factors, and many other things that also can drastically affect a currency's valuation.

Here are a few useful tips that may help you when conducting fundamental analysis in the foreign exchange market:

Keep an economic calendar on hand that lists the indicators and when they are due to be released. Also, keep an eye on the future; often markets will move in anticipation of a certain indicator or report due to be released at a later time.
Be informed about the economic indicators that are capturing most of the market's attention at any given time. Such indicators are catalysts for the largest price and volume movements. For example, when the U.S. dollar is weak, inflation is often one of the most watched indicators.
Know the market expectations for the data, and then pay attention to whether or not the expectations are met. That is far more important than the data itself. Occasionally, there is a drastic difference between the expectations and actual results and, if there is, be aware of the possible justifications for this difference.
Don't react too quickly to the news. Oftentimes, numbers are released and then revised, and things can change quickly. Pay attention to these revisions, as they may be a useful tool for seeing the trends and reacting more accurately to future reports.

Conclusion
There are many economic indicators, and even more private reports that can be used to evaluate the fundamentals of forex. It's important to take the time to not only look at the numbers, but also understand what they mean and how they affect a nation's economy. When properly used, these indicators can be an invaluable resource for any currency trader.

[Gamma]

Not buying it! The debt is in USD cannot see how, without any prospects for appreciable growth this willbe a good thing

[Islandman]

Well that is it. Devaluation of your currency is supposed to make you more competitive. That is why China keeps their currency artificially weaker than it would be if allowed to float freely. But it only works if you have a culture of productivity which we do not.

Bottom line, if we cannot produce enough goods and services that other nations want we will always be poor and our currency unstable.

[Assasin]

It will continue to make us poorer. Other than Grace Kennedy and a few others we don't export anything to earn US dollars. Everything else that is "produced" involve raw material that is sourced from outside. So when the dollar devaluve the raw material also go up. Most of the tourism dollar is doen't see the Jamaican shore, in the long term deluation doesn't help us a lot.

Based on our history, when has devaluing the dollar encouraged more production and productivity?

[Islandman]

But having a fixed rate isn't a solution either, when we did that the banks did not have enough dollars and you had to buy it on the black market.

Devaluation is a symptom, the disease is that we don't produce anything others want and like to consume everything others produce.

[Assasin]

yes it is. However in the short term business need to plan and quick devaluation is not good for business planning and present uncertainty and can cause run on the dollar.

As you say the key is production and productivity and growing Jamaica's GDP or we not doing nothing.

[Islandman]

Yes the instability is a big problem for business. You can lose a lot of money on just exchange rate movement if you not careful.

I have never seen a govt run out of ideas and confidence as fast as this one. The country is effectively leaderless right now.

[Assasin]

I said when they got their 4 years in opposition they should have been planning instead of trying to go to the poll every few months. JEEP was a fiasco and I haven't seen much more.

They have about another year to deliver something because god forbid we ever fail an IMF test under this goverment. Their budget projections last year was way off in ever area in income, so I hope it turn out better this year.

[Skeng DX]

May 01, 2013
Country: Jamaica

Title: Request for Approval on an Arrangement Under the Extended Fund Facility

http://www.imf.org/external/NP/SEC/bc/eng/index.aspx

[Mosiah]

I said when they got their 4 years in opposition they should have been planning instead of trying to go to the poll every few months. JEEP was a fiasco and I haven't seen much more.

You are so right!

I wonder what Andrew Holness and his team are planning to do if they take over the reins of government in another 2 or 3 years.

[Muadib]

What the JLP always does.. manage the economy better than the PNP..