KINGSTON, Jamaica — The Jamaica Chamber of Commerce (JCC) says it is concerned by the increased pace of devaluation of the Jamaican dollar.

A news release from the JCC early Friday outlined that in January the average rate was US$1 to J$120.24. It added that by May the dollar declined to US$1 = J$125.33, which it said represents a decline of 4.2 per cent since the beginning of the year.

The JCC said this, compared to a decline of 4.2 per cent for all 2015 (from US$1 = J$115.32 at the beginning of January to J$120.24 at the end of the year is in its view, cause for concern.

“Jamaicans were advised by the authorities at the end of 2015 that the exchange rate of approximately 120:1 was a competitive one, with respect to our main trading partners. In that context, and in light of the fact that our inflation rate has been below three per cent for the 12-month period ending on May 19, 2016 has remained under three per cent and our Net International Reserves showing a healthy US$2.4 billion, there seems little apparent reason the pace of devaluation has increased,” the JCC said.

It also said that May is not, traditionally, a month characterised by high demand for US dollars by the Jamaican private sector.

“Our concern is that if this rate of devaluation is left unchecked, it could contribute to an erosion of confidence, which could in turn contribute to further devaluation, increased inflation and prove to be a damper on investments,” said the JCC.

“The JCC is therefore calling on the BOJ [Bank of Jamaica] to play a more active role in the management of the exchange rate – including direct intervention – as a matter of urgency.”