BoJ mulls adjustment to cash reserve policy, says JMA Posted on April 3, 2009April 3, 2009 by Your Financial FactSheet Jamaica Gleaner: “BoJ mulls adjustment to cash reserve policy, says JMA” Bank of Jamaica (BoJ) governor Derick Latibeaudiere has signalled that he might bend on policy with a half a percentage point cut in the reserve of cash that bankers are required to park at the BoJ, if the banks are willing to compromise by cutting loan rates, according to the Jamaica Manufacturers’ Association (JMA). Jamaica Observer: “World stocks surge after G-20 pledge to fight recession” NEW YORK, USA (AFP) – World stocks shot higher yesterday amid greater optimism following a G-20 summit pledge to boost efforts to fight recession and a US accounting change that could ease pressure on the banking system.
Will the Budget Move the Market? Posted on April 1, 2009April 1, 2009 by Your Financial FactSheet Jamaica Observer: “Will the budget move the market?” Spring has arrived and foreigners are looking for an affordable place to relax. Jamaica is lucky that tourism has experienced some growth and is hoping it will continue in the coming months. Jamaica Observer: “Does Turkey’s export-led growth hold lessons for Jamaica?” Last week Wednesday, a very interesting World Bank seminar entitled “Is there a lesson from the Turkish Experience, 2001-2008” was held at the Mona School of Business.
Jamaica’s downgrading will not affect the funding of the budget – Ross Posted on March 27, 2009March 27, 2009 by Your Financial FactSheet Jamaica Observer: “Jamaica’s downgrading will not affect the funding of the budget – Ross” Jamaica’s rating downgrade will not affect the financing of the budget as it will be funded mainly with internal or donor agency funds, says Dr Carl Ross, managing director of Oppenheimer Atlanta. Jamaica Observer: “If you were Minister of Finance how would you spur growth in Jamaica?” It is generally acknowledged that the Jamaican economy is in the doldrums and already the rating agencies have downgraded the country. Jamaica’s public debt is now at J$1.2 trillion and its fiscal and trade deficit are at nightmare proportions.
Why the BoJ can’t deliver growth – Pt IV Posted on March 20, 2009March 20, 2009 by Your Financial FactSheet Jamaica Gleaner: “Why the BoJ can’t deliver growth – Pt IV” The accumulation of our net international reserves (NIR), because of its direct link to an ever expanding ’emergency’ import index, and being funded by expensive ‘open market’ instruments/liabilities, if continued, will result in further financial burdens and operational inefficiences for the central bank. Jamaica Observer: “Standard and Poor’s downgrade final warning of Jamaica’s need to make tough decisions” Late Wednesday afternoon, on the 18th of March, international rating agency Standard & Poor’s lowered both Jamaica’s long-term foreign and local currency sovereign credit ratings on Jamaica by one notch to ‘B-‘ from ‘B’, and lowered our short-term ratings a notch to ‘C’ from ‘B’. Jamaica Observer: “What caused the global financial meltdown?” The global financial meltdown that began with errors made by US finance houses has transmuted into a global economic crisis, which will have an impact upon most people. Its cause cannot be primarily put down to the shortcomings of mortgage-backed securities or CDOs for that matter, but a number of factors all acting in concert to create a perfect storm.