$125 to 1 USD to rass....Thats why JMD is not a BENZ currency...
In my lifetime, I have seen the JMD fall and break it back from $33.46 the day I was born to $125.14 today, representing a move of 347% in 22 years.
But with currency, we have looked at it the wrong way all these years. What if I told you that the value of the Jamaican dollar is as a result of commodity preference. Think of it this way if you were given the chance to get a Ferrari and owned 500 Lada's how many of the Lada's would you give p to get that one Ferrari.
Let's use a little Econ here if the relative cost of a Ferrari was 100 Lada's you would buy the Ferrari If the cost jumped to 350 LAda's you would still buy the Ferrari. The case in point here is that even though you have many more Lada's or Jamaican dollars your preference is with US Dollars. So you will always want US dollars. The exchange rate depreciates (not devalues) so as to make USD relatively more expensive but with preferences remaining te same people are willing to spend more to buy the US dollars.
Therein lies the real issue the Jamaican Dollar is not a star currency, its junk currency. A good currency is backed by three things, large reserves, a large army and is generally accepted and traded. By the looks of it, the Jamaican Dollar has none of those characteristics.
So the actual exchange rate is really irrelevant.
PS the views expressed here some of them are not my own and belong to my boss
But with currency, we have looked at it the wrong way all these years. What if I told you that the value of the Jamaican dollar is as a result of commodity preference. Think of it this way if you were given the chance to get a Ferrari and owned 500 Lada's how many of the Lada's would you give p to get that one Ferrari.
Let's use a little Econ here if the relative cost of a Ferrari was 100 Lada's you would buy the Ferrari If the cost jumped to 350 LAda's you would still buy the Ferrari. The case in point here is that even though you have many more Lada's or Jamaican dollars your preference is with US Dollars. So you will always want US dollars. The exchange rate depreciates (not devalues) so as to make USD relatively more expensive but with preferences remaining te same people are willing to spend more to buy the US dollars.
Therein lies the real issue the Jamaican Dollar is not a star currency, its junk currency. A good currency is backed by three things, large reserves, a large army and is generally accepted and traded. By the looks of it, the Jamaican Dollar has none of those characteristics.
So the actual exchange rate is really irrelevant.
PS the views expressed here some of them are not my own and belong to my boss
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