The Jamaican dollar (J$)is now worth just a little over 1 US penny…. Wow…….. What a shame!!! This has been the trend of the down escalator of the J$ for the past 30 plus years, and one wonders when and where it will stop. One of my first memories as a child is my father coming into my room one sunny morning in 1969 with a large poster showing the birth of Jamaican currency to replace British currency that had been used in Jamaica up to that time. He was filled with so much pride at this sign of Jamaican independence and maturity. Now he must be turning in his grave at the demise of our Jamaican currency. I also remember my first trip to the USA in 1976 when the J$ was still stronger than the US$ and being happy at the extra foreign exchange that we received at the bank a consequence.

Then we hit the down escalator button which has in more recent times been replaced by a down elevator, with dramatic drops through the floor for the J$. The fact is that many Jamaicans, from top bureaucrats and politicians to the primary school teacher and unemployed Jamaican have lost all confidence in Jamaican currency. We have moved fairly quickly from the J$20 being the largest denomination to the ‘Nanny’ (J$500) then the ‘Manley’ (J$1000) and now last month the unwanted ‘Shearer’ (J$5000). With all the positive reasons given for devaluation, such as making Jamaica more attractive for investment, the promised jobs and overall improvement in the economy have not become reality. Instead the majority of Jamaicans have experienced eroded purchasing power, decreased real income, increased inflation and higher cost of living, along with an overall decrease in living standards.

Since Jamaica has not benefited from the rampant devaluation and its currency is now worthless (really worth much less), my recommendation is to bury the J$ and replace it with a more stable currency, possibly the US$ since most Jamaicans are already familiar with it. For so many products and services all over Jamaica, the US$ is quoted anyway (another sign of lack of confidence). Once this no confidence vote in the J$ continues, there will be no “up button” on the down elevator. On the other hand a stable currency will do a lot to help Jamaica settle down to the great task of rebuilding, by reducing the level of inflation and increasing the confidence of local and international investors. Regular savings in the banks will actually start to increase in value. We all agree that sovereignty is important but we also know that it won’t cover the grocery bill for the single mother of four who has to pay more for a smaller package each time she heads to the supermarket.