Bank of Jamaica Governor Brian Wynter says the Jamaican dollar is no longer overvalued and is now less susceptible to unpredictable slippage, following recommendations by the International Monetary Fund (IMF) for its continued devaluation to maintain competitiveness.
The statement, which was yesterday released by the bank under the September quarter review, also indicated a two percentage point decline in the country’s inflation rate quarter over quarter — from 3.8% to 1.8% continuing on its 40-year-low trend.
The statement follows an almost 70 per cent decline in domestic financing by the Government for the September quarter when compared to the same period last year and since the beginning of the agreement with the IMF.
Additionally, a major boost is expected to occur within the financial sector following the payout of $62 billion of maturing NDX bonds to bondholders next February. The payout will provide the banking system with additional liquidity to prompt further expansion in loans for the productive sector at more affordable rates.