AS the country continues to enjoy macroeconomic stability we should gear up for more exciting times ahead, as within the next five years Jamaica should be able to borrow on the international market using its own currency.
These were the pronouncements of Dr Nigel Clarke, minister of finance, when he addressed the foreign exchange market development symposium held on Wednesday.
Speaking to several key stakeholders converged at the Bank of Jamaica (BOJ) auditorium, the country’s finance minister told an attentive audience comprising mostly private sector, media, and business representatives that if we are able to achieve this objective, the risk to the Jamaican economy will be greatly reduced.
“We don’t just have to depend on our local institutions for lending to us in Jamaican, we can borrow Jamaican overseas,” he emphatically stated. He further reasoned that “this will allow us to over time change the composition of our debt, leaving us less susceptible to exogenous forces that can affect the economy”.
This measure will be a larger part of the plan to move the country in a direction in which it can compete and be a part of best practices adopted by other countries globally.
“We don’t pursue things without a long-term strategy and this impending strategy is to be able to diversify our sources of funding and to have the domestic institutional credibility that we can borrow in our own currency,” the minister added.
He further shared that countries such as Germany and Japan utilise similar fiscal policies and targeting frameworks, which may be a contributing factor to the level of success they have economically.