Chart Of The Week: J$105 To US$1

 

Source: Bank of Jamaica
Source: Bank of Jamaica
Click to enlarge

On October 1, 2013 the average selling rate for US$1 was J$103.73, thirty days later the US Dollar sold for an average J$105.07 on October 31,2013, the same day US dollar traded as high as J$109.35. The movement in the average daily selling rate represents a depreciation of 1.28% over the thirty day period.

Since the approval of the IMF Agreement on May 1, 2013 (5 months ago) the Jamaican Dollar has depreciated by $5.72, the price for the US$1 at the time was J$99.33 (average for the day).

In comparison to the corresponding period in 2012 the Jamaican Dollar has depreciated by 13% or J$13.96 and when compared to the last trading day in October 2011 the Jamaican Dollar has depreciated by 18% or J$18.96.

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Public debate is that the depreciation in the value of the Jamaican Dollar should be viewed as good as far as exports are concerned, Jamaican products and services become cheaper, but does it really benefit us when for years we have not been able to significantly increase the level of exports. Do you think the country is able to do it now?

Share your views on the sliding dollar below?