BOJ Intervention A Vindication Of JLP Policy – Shaw

Release Date: 
Thursday, July 10, 2014 - 16:00

Opposition Spokesman on Finance and Planning Audley Shaw has labeled the Bank of Jamaica’s announced plan to intervene in the foreign exchange market as a vindication of the policy of stability promoted and successfully applied by the Jamaica Labour Party.

Mr. Shaw said “We have been warning the government for months that devaluation is hurting business, hurting people and hurting Jamaica. We were criticized for our positions, but as the higher prices and speculation have become chronic along with undeniable reductions in exports, it seems the BOJ has finally woken up”.

The Opposition Spokesman said that while the intervention is a good step, it does not go far enough.  He said: “Investors do not know the direction of the government so businesses cannot plan. The Government could decide next week to start devaluation again and this possibility does not bring confidence to the market and to the business sector.  The Government must state its policy direction clearly, and its policy must create a stable and predictable environment.

He continued: Furthermore, if we are going to benefit from this IMF deal then the Government must also come up with a proper growth and development policy that is bankable and saleable.  No prosperity can come to Jamaica without a robust growth strategy, and the Government has yet to set one out for the people of Jamaica.”

Mr. Shaw added that currently the suffering being faced by the people because of the uncaring policies of the government will continue unless the government starts putting the interest of the people of Jamaica first and not just talking about passing IMF tests.

He said, “Yes we are passing IMF tests but at what cost?  JPS is about to start cutting off government’s light, doctors and nurses are in peril because the government is holding on to their mortgage payments and suppliers are suffering as the Ministry of Health will not pay them – and this is just to name a few examples of the state of mismanagement this country is in. While the government is passing IMF tests they are failing the supermarket test, the gas station test, the school fee test – essentially, all of the people’s tests.”

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