Monday, January 22, 2018

Reckless call for devaluation *


Why does the IMF (International Monetary Fund) keep insisting this country's currency is “overvalued”? How does one arrive at a “correct” value? Is there indeed such a thing? Who benefits and who loses when a country devalues its currency?

I was a medical student at Mona, Jamaica, in 1972. At that time, I recall that the exchange rate was almost $5 to Ja$1. At Papine and Ligueny, a tasty Jamaican patty would cost less than Ja$1.

According to data from the Bank of Jamaica in 1972, US$1 equated to Ja$0.77. I am sure that the politicians in that country were pressured, lied to, tricked and increasingly coerced to devalue their “overvalued” currency.

 

To get the full story, subscribe or login

Subscribe to vNews | Log-In to vNews