(Jamaica Gleaner) The Jamaican dollar hit another psychological mark at $130 to the United States currency a week ago, but there does not appear to be any heightened concern among businesses, according to the reaction from two private-sector lobbies.
The exchange rate was estimated at $130.30 on Wednesday, having reached the threshold on May 10.
Chief executive officer of the Private Sector Organisation of Jamaica, Dennis Chung, said the Jamaican dollar depreciating to $130 "is a psychologically significant mark". The currency has lost a dollar of value in six months, a period in which the currency sometimes appreciated.
Chung said a one-dollar slide of the currency translates to less than one per cent depreciation and would not have any significant impact on inflation, adding that a five per cent diminishment in value is what is expected annually.
In the past year, the JMD has depreciated by three per cent. For the calendar year to date, it has declined 1.45 per cent.
Chung said he has not heard any real concerns being expressed about the level to which the local currency has depreciated, reiterating that "I think it's really just a psychological thing".