Financial Analyst Dennis Chung calls for urgent intervention in the Foreign Exchange Market as debt servicing cost rises and local spending power diminishes.
Meanwhile, Jamaicans are being warned to brace for an increase in the cost of goods and services, with the continued devaluation of the local currency.
Chung therefore believes that with the increasing foreign exchange rate immediate attention as Jamaicans will feel the impact.
He says the dollar depreciation will lower the foreign-currency prices of U.S.-made goods and services, which will make exports more attractive to foreigners.
However, at the same time, local consumers will have to bear the brunt of higher prices.
Chung notes that the continued devaluation of the Jamaican dollar will make the country’s debt payment a little more expensive.
Additionally, he says the informal economy will continue to see disruptions with the re-imposition of COVID-19 restrictions.
At the end of currency trading on Tuesday, July 27, the Jamaican dollar stood at $156 to $1 U.S.
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