How do we reduce our dependence on foreign currencies?

85…86…87…88 and rising, the question on everyone’s list is “how high will the exchange rate rise?”

The dreaded 100 to one rate which once seemed so far away is now just around the corner.

Initially, the government has said that the need of financial sector companies to meet margin calls resulted in unusually high demand for foreign currency.

Now we are told that suppliers can not get access to their regular lines of credit resulting in them having to go to the banking system in order to meet their needs.

The Minister has conceded that there is speculation in the market place but seems to be playing down its’ effect on the value of the Jamaican Dollar.

I suggest that the problem may be one of confidence or lack thereof.

Many Jamaicans do not have confidence in the ability of the financial sector to weather the current world crisis or in the government to manage the crisis.

What is needed is strong leadership from the top, simply denying the problem will not make it go away.

The Jamaican people want to know that the country is doing all that it can to minimise the effects of the worldwide recession.

At times the statements coming from our leaders give a mixed picture of the situation. One minister will sound very optimistic and the other extremely pessimistic.

Good leadership should result in one message coming forth; all players must be on the same page and working towards the same goals. Without this leadership there can be no confidence instilled in the hearts of the people.

The efforts of the government in securing external financing and thus bringing in much needed foreign exchange are commendable but “is it enough?”

The people must be pointed in the right direction. It would be foolhardy to think that we can escape the effects of what is happening; we must be prepared to sacrifice some things for the good of the country as a whole.

Now is the time not to go out and buy $US but instead to cut back on imported items reducing the need for foreign exchange.

Let each man search his heart and find the strength to just ‘say no’ to self but yes to this country ‘Jamaica land we love’.

What do you suggest we do to reduce our dependence on foreign currencies?   Leave me a comment.
Carl.