The Evaporating Dollar…

December 31, 1999 – Some of us as “techies” waited till midnight to see if the world would end with the Y2k bug that was supposed to reset millions of machines. Some of us just went out and partied. Others weren’t even born yet.

One thing was sure though, the Jamaican dollar closed the year at J$41.42 for US$1. In less than thirteen years, we have flown past the J$100 to US$1 mark.

That’s right the dollar has more than doubled since the first millennium baby was born. More than J$60 has been lost off the value of our Jamaican dollar! If this is not bad enough, the IMF thinks we’re still significantly overvalued.

Source: Jamaica Gleaner

DiGJamaica wants to know how we got here. What was the annual J$ depreciation in Jamaica from 2000 to 2013 (year to date)? Let’s answer that question with an easy to read line chart (note that 2013 data is for January 1 to August 27):

Source: Bank of Jamaica

Although we don’t choose to remember it, we have had many years of significant currency depreciation since 2000. Three of those years exceeded 10%! We had one year of currency appreciation, I’m sure many remember 2010 and 2011 very favourably.

It’s been a slow and steady ride from $41.42 to $102.09. Where do you think the dollar will be 13 years from now?