Pound dropped 23% against JMD in 7 months. A stronger dollar for little third world country is not good overall. This will attract less exports as it is more expensive for foreign countries to buy products or exports from the country. In addition, tourism, which the country's biggest contributor to its GDP. Apparently tourism earns over 50% if the country's total foreign exchange earnings and provide about one forth of all jobs in Jamaica. Investment from people living overseas will also take hit as inflation and devaluation of their currency against the JMD will defer planned investments. Could be some hard time ahead. At the same time the USD continues to gain strength against all currencies. This is the reserve currency at the moment so Jamaica need USD to trade.
Commentaire:
Lord MEDZ