Clar­ity needed, Min­is­ter Shaw

Jamaica Gleaner - - OPINION & COMMENTARY -

THE EDITOR, Sir: I HAVE noted the re­sponse to The Gleaner of Novem­ber 21, ask­ing for clar­ity on the pro­posed for­eign ex­change auction sys­tem to be used by the Bank of Ja­maica (BOJ). Two things are im­me­di­ately ap­par­ent.

One is that while The Gleaner called for a re­sponse from Finance Min­is­ter Aud­ley Shaw and BOJ Gover­nor Bryan Wyn­ter, nei­ther obliged. In­stead, there was a joint ar­ti­cle by two IMF of­fi­cials.

Sec­ond, their ar­ti­cle did not pro­vide clar­ity. How is this sys­tem go­ing to work?

Since The Gleaner’s ed­i­to­rial I have asked a num­ber of bankers, who have been un­able to shed light on the sys­tem.

Those of us who re­mem­ber the auction sys­tem of the 1980s re­call that it was not the most ef­fi­ca­cious for al­lo­cat­ing FX. It was of­ten ma­nip­u­lated by the cen­tral bank and the finance min­istry.

The Gleaner’s ques­tions are per­ti­nent. There is need for clar­ity, sooner rather than later.


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