Dear Editor,

I sometimes wonder if politicians think we are stupid. The Minister of Finance Dr Nigel Clarke made some strange utterances recently on the concerns raised about the declining value of the Jamaican dollar.

He said the decline is not detrimental to the Jamaican people, he also suggested that there is no need to worry as the rate goes up and down.  Really Dr Clarke? I’m trying to recall the last time the rate gained any significant value in the Jamaican currency market.

We are also concerned about margin of increase, relative to time. What Dr Clarke said surely applies to exchange markets in most other countries where rates go up and down over time, and where rates are impacted by movement in interest rates etc. In the Jamaican context, there are more variables which cannot be ignored; it is not just text book principles.

Politicians on either side, and all Jamaica should be concerned about the continuing decline in value of our currency. We know that the decline affects most prices and production, ultimately forcing up inflation. Fuel especially drives most businesses and production of goods and services, nearly every item will be affected by devaluation in some way.

Despite the boom in tourism industry and increases in foreign investments, this seems to have no impact on the supply of foreign currency. Dr Clarke must understand that in reality, economics is to a large extent common sense and not just text book and people do react based on their own experiences and self interest.

Understandably Dr Clarke is pushing for calm, rather than fear which only make matters worse. But I would’ve really preferred if Dr Clarke had stated some specific fiscal policies and programs aimed at stabilising the value of the local currency.

P Chin