Jamaica’s Foreign Exchange Crisis; Petrocaribe and the Net International Reserves

Financial Analyst Dennis Chung addresses two major foreign exchange related issues that have affected us in recent weeks. His view is that “Jamaica’s foreign exchange crisis is driven primarily by the way we approach challenges.”

The two challenges are

• The uncertainty of the Petrocaribe deal because of the death of Venezuelan President Hugo Chavez, and what it would mean for Jamaica’s (and other Caribbean countries’) balance of payments. In the case of Jamaica the immediate effect would be a US$600 million hit.
• The second is the fact that the NIR went below the internationally acceptable benchmark of 12 weeks of imports, and the lowest level in ten years.

Read his solution to solving Jamaica’s foreign exchange crisis