The better party was elected in December 2011 and the NIR and the JA dollars has been in free since then. Based on the rate of devaluation and the now critical shortage of the Green back, the dollar will worth one cent before June of this year.
Congrats to Portia and the PNP , they have done such a wonderful to rescue the Jamaican economy.
Ask any businessman, this is the worst they have ever seen in a very very looooooonnnnng looooonnnnng time and its projected to get worse as more and more persons try to get of of the $J and into US$.
Courtesy: Jamaica Observer
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Warren's Blog 
How could jamaicans allow the pnp back in jamaica house after they destroyed the economy
“No worries, mon! Everything will be alright!” Jamaica number one source of Foreign Exchange is Remittance, so more money, more money when the dollars arrive from Western Union mon! Jay, don’t be no cloud on a sunny day…chill mon…
Jay, Peter Phillips says …”Sliding Dollar Creates An Opportunity For Producers”. Are you a producer Jay? Heh heh heh…………….
The sad thing test is we export next to nothing. The dollar is creating havoc for me. I am having hard time paying my overseas bills, its a major headache.
If we were a next exporter it would be great. The thing is we are net importer, which means prices will skyrocket.
That is the jamaica reality .
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But we have known for a long time that the Jamaican dollar has been overvalued for a long time. We pump it up artificially so that we can buy foreign goods that we we really can’t afford. Let the dollar achieve proper purchasing power parity (about 157JMD to 1 USD), then work on fixing energy , and then a proper services and heavy industry.
Satan:
I would be very appreciative if you could explain, in an abbreviated manner, how you arrive at this number of JMD$157? Please keep it simple for the uninitiated among us who were deprived of any exposure to high level Economic Theories.
This number seem so precise, that it leads one to question its origin. Is there some form of quadratic equations of the form Y=AX^2+BX+C (or even a linear relationship, Y=MX+C), that I can plug some numbers into, thereby arriving at this magical number? If no equation, are there some Jamaican money supply/demand curves (tables) I can reference, which, when superimpose, would show an equilibrium point of JMD$157? Or is this a static number, not influence by ANY variables over time, t?
Sure. I’m using what 1 US dollar in 2011 money could buy in 1980 coming up to 2011. Then take away all the manipulation like the NIR, tariffs, duties subsidies and other things that affect the prices of imports and exports to get the PPP. Assuming oil at 80 dollars , we are overvalued by about 80 to 70 percent. However, based on the basket of goods that we are now using, I think that that is still too low.
My reasoning for the dollar overvaluation comes from data collected by the CIA and archived t the Index Mundi website (I am too lazy to check the PIOJ.)
Its influenced by variables over time, so it must be solved algorithmically, no plugging in.
Yes, but some people seem to think that artificially propping up the dollar is the right thing to do. Which it is not. Let it slide to it’s fair value and then work on ensuring that the economic fundamentals (not borrowed money) can ensure that the rate then remains stable (or even appreciates). If that happens then there is every possibility the dollar can then be fixed in the future as happens for Belize, the Bahamas, Eastern Caribbean and Barbados (and effectively for Trinidad)
We’re also going to have to get real austere
1. Electricity (and therefore water) rationing. At least till we can switch out our steam for modern gas turbines, and then then finally or Geh3+ nuclear to give us baseload power at 5 cents a kilowatt
2. Limit our motoring. That 2.4 billion dollar oil bill isn’t going away, LNG or not. If you live in a housing scheme, carpool. I f you drive a SUV/or pickup truck, and are not a roofer or carpenter, carpool. In fact, if you can prove that you are a carpooler, you should get some sort of government refund at the end of every week, based upon your route and passenger load.
I’ll try and think up some more, or maybe do post over at my side.
The Jamaican dollar is overvalued by 65%. Furthermore, devaluation only works for export oriented countries and we don’t export enough. Additionally, our exports are already in US$ so devaluation will not benefit Jamaica.
The dollar was being traded for as much as $100 : 1 today by some traders.
That’s not news.They have been trading the dollar with a spread of 81/98 or 81/100 for weeks now at the airport in Kingston…..
Are you suggesting a active blackmarket at the airport ?
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No. That’s at the official (and sole) cambio after you check in.
I don’t know what your hang up is about a black market. This is at the bureau de change at Norman Manley airport. There is certainly nothing black market about it as the agents are not giving you a different rate than what is advertised by the business they official work for and this is not occurring on the grounds outside the airport with higglers and unofficial money changers. It’s simply a monopoly situation resulting in the fleecing of customers.
And in fact, if I’m not mistaken it’s been like that at the bureau at the airport for years now. It’s why most people DON’T use it and change their money at the bank before they get to the airport. It’s just the airport, being the airport and overpricing everything because they have you captive.
I was off the mark on this one. Today the dollar hit US$1 = J$98.43 , so my prediction of $100: 1 by June now appears to be way off the mark.
Prediction by Commonsense about where the dollar would be and by when absolutely nailed it !