As the depreciation of the Jamaican dollar continues, the politics of it has come front and center. At a meeting in kellits Clarendon over the weekend, Opposition Leader and Former Finance Minister, Dr. Phillips chastised the government over the sliding. Dr. Phillips contender that the sliding dollar is having a deleterious effect on the Jamaican consumers.
But the current finance Minister Dr. Nigel Clarke is firing back. Writing on his Facebook page, Dr. Clarke said some very unfortunate statements were made by Leader of the Opposition and former Minister of Finance Dr Phillips regarding the exchange rate on a political platform.
He went on to state that Jamaica has and continues to utilize a floating or market determined exchange rate. A floating exchange rate is one that is determined by supply and demand on the open market as well as macro factors.
As Minister of Finance in 2014; Dr Phillips defended the JMD and the floating exchange rate despite a higher 10.8% depreciation. These are the facts.
The Opposition Leader and then Minister of Finance went further in his presentation in defence of the Exchange Rate Flexibility.