The rapid deterioration of our net international reserves (NIR) is very serious and must be stemmed. We ought to accept the need for two of our greatest bankers, Derick Latibeaudiere, former governor of the Bank of Jamaica, and Bill Clarke, former head of Scotiabank, to be consultants at the BOJ, in spite of the unquestionable credentials of the current governor.
We should also be convinced that high interest rates payable by banks on foreign currency deposits by foreigners would be of immense assistance in stemming the depreciation of the NIR. I do not think I need to give particulars here, because a word to the wise should be sufficient, and I am not addressing dunces in the sphere of economics and all those who are blessed with common sense.
In the meantime, I urge the governor not to try to defend the dollar by depleting the NIR, because that has not been working; it has only been to some extent slowing the inevitable continuing and endless slide. The depreciation also destroys confidence and flight of the dollar, as well as inhibiting domestic and foreign investments. It also gives ammunition to power-hungry politicians, who, instead of working with the government in the interest of the people, continues to spread propaganda.
Owen S Crosbie