Revalue the Jamaican dollar
THE EDITOR, Madam:
I AM not an economist, nor have I studied it as a subject, but from my layman perspective, a nation’s currency is designed to bring about a sense of national pride in the international marketplace. When Jamaica became independent i n 1962, the currency was the pound sterling. By September 1969, it gave way to the Jamaican dollar, which enjoyed a robust exchange rate against currencies. Back then, the Jamaican dollar was stronger than the mighty American ‘greenback.’ Sadly, now in our 59th year of Independence, the Jamaican dollar is less than one cent in value when compared to the United States dollar.
Alan Greenspan, former chair of the Federal Reserve of the United States, once said: “The soundness of a nation’s currency is essential to the soundness of its economy. And to uphold our currency’s soundness, it must be recognised and honoured as legal tender, and counterfeiting must be effectively thwarted. Such truism reflects how badly we are rated and treated in the international marketplace.” It is unbelievable that Haiti, the poorest nation in the Western Hemisphere, has a higher rate of exchange when compared to the US dollar. I took pains to research all the other currencies in the region, only to discover that Jamaican dollar is at the very bottom of the exchange rate chart.
I observe that most items listed for sale are quoted in US dollars. Also, there is no demand for coins anymore; and even $1,000 is not enough to meet a child’s lunch and travel needs for a day. No wonder scamming has become one of the major sources of income for the nation. Work has become a disincentive because hard, honest work is not providing a worthwhile living wage. People are overworked and underpaid. Corruption is, unfortunately, rife in Jamaica and some of those who are carrying out white-collar crimes and other disingenuous activities tend to go free, while the ‘little person’ is imprisoned and punished.
It’s against this background that I am proposing that the Jamaican Government follow the example of Mexico and revalue the national currency, and make a fresh start. This would give the citizens a psychological boost and would also keep a check on inflation and curb the instability in fluctuating prices.
DR BURNETT ROBINSON blpprob@aol.com