PRESIDENT OF the governing Peoples' National Party (PNP), Prime Minister P.J. Patterson on Wednesday night stressed Government's commitment to preventing another massive dollar slide.
In a party address to the nation, Mr. Patterson made it clear that the Government was determined to protect the Jamaican dollar from "unjust depreciation" but said that well thinking Jamaicans must help the Government by not hoarding foreign exchange.
"The sacrifices we have made to build our economy, build up our Net International Reserves to bolster our international credit worthiness and ensure that we have a cushion against emergencies must not go in vain."
SENSIBLE THING
"Let us do the sensible thing by not purchasing foreign exchange simply to hoard it, do not sell your remittances to speculators who put pressure on the dollar, only to find out that prices have gone up for the things you have to buy," he said.
For most of May, a loss of confidence in the Jamaican economy and the local currency and fear of how investments would be affected by the dollar's decline in value fuelled a massive depreciation against its three trading partners, the US and Canadian dollars and the Pound Sterling.
The dollar's free fall resulted in it losing close to $10 against the US dollar between May 1 and 19, before appreciating after the BOJ implemented market intervention measures announced by Prime Minister P.J. Patterson in a nationwide broadcast in late May.
During the slide the Jamaican dollar, for the first time, sold at over $60 for one US dollar, over $40 for one Canadian and over $100 for one pound. BOJ officials and the Prime Minister also said then that the slide was fuelled by speculators.
In his address, Mr. Patterson also again attempted to justify why the Budget contained additional tax measures.
PUBLIC EXPENSES
"No Government takes any pleasure in imposing taxes. But we have to meet public expenses and service national debt," he said, adding that the Government was "committed to closing the (fiscal) deficit over the next three years."
The PNP president also tried to swing voters in his party's direction as the country move toward Local Government elections to be held on June 19, 2003 by listing some of what he said were achievements which have been realised after being promised in the PNP's Manifesto issued for last October's General Election.
