The US Embassy on Monday clarified that the new exchange rate for consular services is part of a global policy to maintain fee consistency and shield administrative costs.

On Saturday, the US Embassy issued a press statement announcing that effective July 1, the consular exchange rate will be adjusted to J$165.00 to US$1.00.

On Monday, US Embassy Public Affairs Attaché Michael Lavallee explained that the rate adjustment is not a response to speculation or forecasting of the Jamaican foreign exchange market, but rather the activation of a longstanding policy mechanism.

“These exchange rates are set for a period of time, so the last time this was changed was October 2023… from $155 to $160… so there’s a band that we work with so that we don’t have to keep on changing it on a day-to-day or a month-to-month basis. So once it starts reaching that band, then the embassy will change the exchange rate for its visa products,” Lavallee told the Jamaica Observer.

He noted that the consular fees are standardised globally and priced in US dollars, regardless of the country where they are issued.

“All the visa products around the world are in US dollar prices and it’s the same price in every country. So if it costs $185 in Jamaica it’s gonna cost $185 in China, in Costa Rica, Panama it’s the same. So that is based on the US dollar and that price can change globally but that’s a set price and if it changes in Jamaica it’s gonna change around the world,” he explained.

He also pointed out that the shift to J$165 was triggered after the local exchange rate touched J$160 to US$1 “a couple of times”.

He emphasised that the adjustment helps to protect the embassy from financial losses due to fluctuations in the local exchange rate when applicants choose to pay in Jamaican dollars and stressed that the measure is in line with regulations set by the US State Department.

“This is the way it is all around the world it’s not unique to Jamaica, this is the process for setting the exchange rate at every embassy around the world… it’s part of our State Department regulations to then expand the band up to the next level once the exchange rate that is set is reached,” he added.

Lavallee also explained that under this model, the rate could be reduced if the exchange rate falls back below $155.

He used the opportunity to dismiss rumours that the US Embassy had inside knowledge or foresight on movements in the Jamaican dollar.

“This whole speculation that we know more… and are making moves on the exchange rate market — it’s completely not that,” Lavallee said.

He noted that Jamaicans still have the option to pay for consular services in US dollars, which would exempt them from the effects of the revised local exchange rate.