Jamaica Could Borrow in Domestic Currency within Five Years

Jamaica News: Finance and the Public Service Minister, Dr. the Hon. Nigel Clarke, says Jamaica could be in a position to borrow from the international capital market in local currency within five years.

He said that the country is already on this trajectory, citing the Government’s move towards attaining operational independence for the Bank of Jamaica (BOJ), supported by a credible inflation-targeting framework and flexible exchange rate.

“If we do this successfully, within five years Jamaica will be able to issue its first Jamaican dollar bond in the international capital market,” Dr. Clarke said.

He was speaking at a Foreign Exchange Market Development Forum at the BOJ Auditorium in downtown Kingston on Wednesday (July 24).

Dr. Clarke said that the advantages/benefits of countries borrowing in domestic currency internationally are significant reduction in the impact of risks on their economies; and enhanced prosperity over prolonged periods, citing Germany and Japan as examples.

“We wouldn’t be depending on our local institutions for lending to us in Jamaican dollars [as] we could borrow Jamaican [currency] overseas.

PHOTOS: JIS Heritage Tour 2018

“That would allow us to, over time, change the composition of our debt, which [would] leave us less susceptible to exogenous forces that can affect an economy,” the Minister pointed out.

He noted that a number of overseas investors owning “billions of dollars” of Jamaican bonds, with whom he spoke during recent investor road shows in North America and Europe, were “very impressed” with the country’s economic progress over the past six years, and “look forward to the day when they can lend to us in our own currency”.

“So, the strategic intent and long-term strategy is to be able to diversify sources of funding and to have the domestic institutional credibility that we can borrow in our own currency internationally,” he added.

The symposium formed part of the joint sensitisation thrust by the Ministry and BOJ, to heighten public awareness about developments in the foreign exchange market.


Source: JIS News

NOTE: If you have a real-life experience send Mckoy’s News your CONFESSION, GOSSIP or DEAR MCKOY to [email protected] we will publish. We don’t publish names and locations so your personal information will be protected. Send us now!!!!!

© 2019 www.mckoysnews.com. All Rights Reserved.
All material and other digital content on www.mckoysnews.com may not be reproduced, published, broadcasted, rewritten or redistributed in whole or in part without prior express written permission from Mckoy’s News www.mckoysnews.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Chikie Grainz - Dreams Like Me (Official Video)

Di Energy by Minx (Audio Visual Dancehall 2022)