There has been a quick claim of vindication from the opposition Jamaica Labour Party (JLP) in response to the decision of the Bank of Jamaica to intervene in the foreign exchange market.Opposition Spokesman on Finance and Planning Audley Shaw has labeled the Central Bank’s move as one that is in line with the policy of stability “promoted and successfully applied by the Jamaica Labour Party.”
“We have been warning the government for months that devaluation is hurting business, hurting people and hurting Jamaica. We were criticized for our positions, but as the higher prices and speculation have become chronic along with undeniable reductions in exports, it seems the BOJ has finally woken up,” Mr. Shaw said in a press release on Thursday.
But even while welcoming this step, Mr. Shaw declared that it did not go far enough. “Investors do not know the direction of the government so businesses cannot plan. The Government could decide next week to start devaluation again and this possibility does not bring confidence to the market and to the business sector,” he said.
Accordingly, Mr. Shaw wants the government to “state its policy direction clearly, and its policy must create a stable and predictable environment.”
Furthermore, he said, if Jamaica is to benefit from the current IMF agreement, “the government must also come up with a proper growth and development policy that is bankable and saleable,” one that includes a robust growth strategy.”
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"Vindication!" JLP responds to BOJ intervention in forex market
