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Mr. Richard Byles, co-chair of the Economic Programme Oversight Committee (EPOC) which is the body set up to monitor Jamaica’s performance under the International Monetary Fund (IMF) agreement with Jamaica. Mr Byles who heads Sagicor is a respected private sector leader. He was speaking at a Press Conference being held at Sagicor, New Kingston, Jamaica W.I.

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Jamaica successfully passed its 10 periodic IMF review and was eligible to draw down some $US 39 million as a result.

In dismissing the devaluation argument Mr. Byles accused detractors as living in the past.

In 2007 when the JLP last took office the dollar was J$ 86 to 1US$ now it is J$120 to I US$. This is a big drop as you can see. A lot of the raw materials as inputs to manufacture goods have to be imported …this defeats any gains we could have made from devaluation. This is not a great policy as our goods are not very competitive as it was hoped devaluing the Jamaican dollar would have achieved. Our dollar was said to be overvalued and therefore uncompetitive. Byles strongly defends devaluation.

The overall economy appears to be good on paper but unemployment among youths for example is 31percent. Food and other basic items are out of the reach of the average man in the street. Inflation is low … single digit.

There is very low growth of the national economy … less than 2 percent.

NIR

The Net International Reserves (NIR) a bench mark as to how much goods and services that can be bought is by international terms/standards is very good. About 2 billion Jamaican dollars held by the Bank of Jamaica (BoJ) .. 12 weeks supply is recommended as adequate reserves to buy goods etc … we exceed that bench mark. This reserve is obtained from overseas remittances to Jamaica … it fluctuates as can be imagined.

Audley Shaw, JLP spokesman on Finance and Former Finance Minister accuses the PNP led government of Simpson Miller of “failing the people’s test” although passing the IMF tests. Public sector reform which we have failed to meet of 9 percent of GDP may result in massive job cuts in the Public Sector which could explain why early general elections. The Government could get unpopular as a result of these job cuts. Shaw asserts.

Vision’s SIC accused him (Byles) of being a mouth piece for the government, an accusation he denied.

The slide of the J$ to say CANADIAN OR US was raised by me. He strongly defended the government’s monetary policy. It was felt that devaluation was hurting our economy. He rejected that position. Said instead the dollar was
more competitive for external trade.

Pic. and story by Hopeton O’Connor-Dennie, (SIC) senior International Correspondent & photojournalist reporting for Vision Newspaper Canada.

 

 

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