JMD: Damage Limitation

Following the 10.1% sell-off since the turn of the year, the Jamaican dollar has found some stability at JMD87.00/US$. However, depreciatory pressures are being kept at bay by a multitude of foreign loans and desperate interest rate hikes by the Bank Of Jamaica (BOJ), while the country's macroeconomic fundamentals and financial position are deteriorating as fast as new sources of external financing are arriving. We continue to see further depreciation of the Jamaican dollar to JMD90.00/US$ in the short term, and target JMD100.00/US$ as our end-2009 target.

To read the full article, please choose one of the following options: