Uploaded May 2020 | Updated September 2026, 3 days ago
The Jamaican Dollar has taken a beating since March. With all the new happenings since the start of the pandemic what can we expect to be the new norm going forward. The JMD has fallen over 7% since March to the USD. Can we expect this to continue? Covid has caused mass unemployment not only in Jamaica but across the world.
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The devaluation of the Jamaican dollar will has some far reaching effects on our economy. One place you can look so see how this is affecting you is on your light bill. You will notice that every month you get your bill the exchange rate is changing.
The next thing we can look to for is a rise in the price of food and other household items. A lot of these items that that we consume are imported. I don’t believe that any distributor is going to reduce their profit margin to keep prices how they are now. Even the foods that we manufacture in Jamaica will go up. Like bread Jamaica doesn’t produce flour so we have to buy it from somewhere.
The bank of Jamaica normally intervenes in the market to try and stabilize the dollar but they are not prioritizing the foreign exchange rate now they are focusing on the inflation rate. But even if they were to intervene in the market it would not be sustainable even the governor of BOJ said so at their last briefing. We have the NIR which is the Net international reserves. It represents our holdings of US dollars which is about 3BN right now. If this was used to try and stabilize the dollar it could work for a time but at the end of if we use the Jamaican dollar and not the US dollar so it can run out. Our two biggest contributors for forex is remittances and tourism. Now we all know how that is going. Right now travel is severely restricted so nobody is coming to Jamaica.
Right now in the US over 30 Million persons are reported to be without a job. I believe it is safe to say that this is not even a complete number. Reason been I am sure there are persons that are illegal and I doubt they will be included in this number.
Thanks for Watching. Here are some of my other videos
5 Things I learned on my first investment - youtube.com/watch?v=JwvGR_KDYzY&t=01s
Investing 101 | A beginners Guide - youtube.com/watch?v=cdeKv8rgRNw
#jamieradcliffe #businessowner #newbusiness
Disclaimer: All views expressed here are my personal opinions, and intended for educational purposes only.
The Jamaican Dollar has taken a beating since March. With all the new happenings since the start of the pandemic what can we expect to be the new norm going forward. The JMD has fallen over 7% since March to the USD. Can we expect this to continue? Covid has caused mass unemployment not only in Jamaica but across the world.
Follow Me On Instagram: instagram.com/jaradcliffe?igshid=1ozwrpsselzwe
Follow Me On Twitter : twitter.com/Jaradcliffe2030?s=09
The devaluation of the Jamaican dollar will has some far reaching effects on our economy. One place you can look so see how this is affecting you is on your light bill. You will notice that every month you get your bill the exchange rate is changing.
The next thing we can look to for is a rise in the price of food and other household items. A lot of these items that that we consume are imported. I don’t believe that any distributor is going to reduce their profit margin to keep prices how they are now. Even the foods that we manufacture in Jamaica will go up. Like bread Jamaica doesn’t produce flour so we have to buy it from somewhere.
The bank of Jamaica normally intervenes in the market to try and stabilize the dollar but they are not prioritizing the foreign exchange rate now they are focusing on the inflation rate. But even if they were to intervene in the market it would not be sustainable even the governor of BOJ said so at their last briefing. We have the NIR which is the Net international reserves. It represents our holdings of US dollars which is about 3BN right now. If this was used to try and stabilize the dollar it could work for a time but at the end of if we use the Jamaican dollar and not the US dollar so it can run out. Our two biggest contributors for forex is remittances and tourism. Now we all know how that is going. Right now travel is severely restricted so nobody is coming to Jamaica.
Right now in the US over 30 Million persons are reported to be without a job. I believe it is safe to say that this is not even a complete number. Reason been I am sure there are persons that are illegal and I doubt they will be included in this number.
Thanks for Watching. Here are some of my other videos
5 Things I learned on my first investment - youtube.com/watch?v=JwvGR_KDYzY&t=01s
Investing 101 | A beginners Guide - youtube.com/watch?v=cdeKv8rgRNw
#jamieradcliffe #businessowner #newbusiness
Disclaimer: All views expressed here are my personal opinions, and intended for educational purposes only.
