It's the Economy: The sliding dollar and its effect on purchasing power.

Author: Stacy Jeffery

How will the slide of the Jamaican dollar affect Jamaicans?

The latest news is that the Jamaican dollar is now trading at J$158.79 for one (1) deggeh US dollar!* Alarming isn't it?! But what does that mean for you the regular Jamaican. It means that your expenses will go up. Your light bill will go up (besides the effects of the tax on oil and gas), the price of goods and some services will rise also, the foods we love to eat will be pushed further out of our reach. If we consider the fact that we consume a great deal of imported food and the basic goodies we enjoy eating are already almost out of the reach of most Jamaicans to purchase this added pressure on the dollar can only be bad news for us. 

Purchasing power will fall, which means more Jamaicans will be deemed below the poverty line. With youth unemployment dangerously high this would no doubt cause an even sharper increase in the rate and a possible spike in crime figures (A recent article shared on this blog also revealed that there is a link between youth unemployment and the rise in crime, please see article here). 

Additionally, this would have deleterious effects on our economy and cripple the ability of our nation's entrepreneurs to start-up, build or even sustain a business! We all know that this could potentially mean more lay-offs - more unemployed individuals. Loss of productivity, economic growth and development would be a real possibility. Something must be done to slow down the slide of the dollar and facilitate its strengthening before our country slips into a serious economic slump. 

* See article from Nationwide90FM - Forex: JMD Hits New High Against US.

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