Concerns over high rates for US dollar

Former finance minister Audley Shaw on October 7th  called on the Jamaica government to implement a number of measures aimed at slowing or reversing the exchange rate of the local dollar against the United States currency. Shaw, who is seeking to take over the leadership of the main opposition Jamaica Labour Party (JLP), said that the Portia Simpson Miller administration would need to implement the measures as a “means of restoring confidence in the economy”. The US dollar now trades at J$104 and the former finance minister said the government should hold talks with the various stakeholders to “calm rapidly escalating concerns that the economy is going off the cliff”. Shaw said the government should seek “immediate and urgent dialogue with the critical stakeholders in the foreign exchange market seeking their support to temporarily fix the exchange rate at the existing level or close to it” as well as carry out an urgent review of tax measures that are hostile to the productive sector. He said the authorities should consider specifically the rollback of the increase in Transfer Tax and Stamp Duties, abolish the Dividend Tax and all taxes on raw materials and capital goods for the productive sector.

Courtesy: www.cananewsonline.com