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At least one trade union leader is raising concern about the slide in the value of the Jamaican dollar especially as it relates to the country's public sector workers who are grappling with wage constraints.
Helene Davis-White, vice-president of the Jamaica Confederation of Trade Unions (JCTU), said the situation is particularly worrying given signs that currency depreciation could continue.
In an interview with RJR News Sunday night, Mrs. Davis-White pointed to the possible impact on the cost of living.
“The experience has been that once the dollar has to depreciate in value then it means that it has a negative effect on workers because prices generally go up, especially because our economy is one that heavily dependent on imports, so for that reason we are very concerned with what is happening,” said Mrs. Davis-White.
Record price
The US dollar climbed to a new record price above J$100 to US$1 on Friday. It was being sold for an average of J$100.08. That was up J$0.15 from Thursday. The highest selling price was J$104.65.
In the meantime, issues concerning the sliding dollar are to be referred to the economic policy oversight committee which was set up to monitor conditionalities under Jamaica's agreement with the International Monetary Fund (IMF). Mrs. Davis-White said the matter will be placed on the agenda of the committee's next meeting which is scheduled for early this month.
“We will have to determine whether is what is happening is within the context of what was agreed and for the relevant officials in BoJ and the Ministry of Finance to advise as to what are the policy options to ensure that the negative effects are not felt for too long,” added Mrs. Davis-White.
Close monitor
And, the island's major supplier of chicken meat, Jamaica Broilers, is closely monitoring the movement in the exchange rate to determine if there will be an impact on prices to consumers.
Ian Parsard, vice-president at Jamaica Broilers, spoke with RJR News:
“What it means is that we will have to look at the movement very carefully and if there’s continued slippage, chances are we will have to look at sharing a price increase with the consumers; meaning that we won’t necessarily take the price increase that we would like to take because we understand that the consumers are under pressure. It’s something that will be under review almost on a daily basis,” said Mr. Persard.
Helene Davis-White, vice-president of the Jamaica Confederation of Trade Unions (JCTU), said the situation is particularly worrying given signs that currency depreciation could continue.
In an interview with RJR News Sunday night, Mrs. Davis-White pointed to the possible impact on the cost of living.
“The experience has been that once the dollar has to depreciate in value then it means that it has a negative effect on workers because prices generally go up, especially because our economy is one that heavily dependent on imports, so for that reason we are very concerned with what is happening,” said Mrs. Davis-White.
Record price
The US dollar climbed to a new record price above J$100 to US$1 on Friday. It was being sold for an average of J$100.08. That was up J$0.15 from Thursday. The highest selling price was J$104.65.
In the meantime, issues concerning the sliding dollar are to be referred to the economic policy oversight committee which was set up to monitor conditionalities under Jamaica's agreement with the International Monetary Fund (IMF). Mrs. Davis-White said the matter will be placed on the agenda of the committee's next meeting which is scheduled for early this month.
“We will have to determine whether is what is happening is within the context of what was agreed and for the relevant officials in BoJ and the Ministry of Finance to advise as to what are the policy options to ensure that the negative effects are not felt for too long,” added Mrs. Davis-White.
Close monitor
And, the island's major supplier of chicken meat, Jamaica Broilers, is closely monitoring the movement in the exchange rate to determine if there will be an impact on prices to consumers.
Ian Parsard, vice-president at Jamaica Broilers, spoke with RJR News:
“What it means is that we will have to look at the movement very carefully and if there’s continued slippage, chances are we will have to look at sharing a price increase with the consumers; meaning that we won’t necessarily take the price increase that we would like to take because we understand that the consumers are under pressure. It’s something that will be under review almost on a daily basis,” said Mr. Persard.
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