When a Government devalues its currency, it is essentially making a decision that shifts the burden of economic conditions.
February 20, 2025
The tariff-like effect of devaluation
Dear Editor,
Since the deliberate destruction of the Jamaican economy for political expediency and power in the 1970s, arguments to keep our dollar devalued against certain major currencies has left us suffering like boiling crabs to the point that it has become a pressing economic issue that often goes overlooked in public discourse: the devaluation of a nation’s currency and its implications for the everyday citizen.
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While currency devaluation is frequently portrayed as a necessary economic adjustment, it functions more closely to a tariff on ordinary people, effectively oppressing our citizens and undermining their purchasing power.
When a Government devalues its currency, it is essentially making a decision that shifts the burden of economic conditions — such as increased cost of imports, erosion of savings, inflationary pressure, economic uncertainty, and so on, onto its populace. The immediate consequence of devaluation is a rise in the cost of imports, and as the value of our currency falls, imported goods become significantly more expensive. For many families, especially those reliant on essential foreign products — such as fuel, food, and technology — this translates directly into higher living costs. In essence, citizens are forced to pay more for the same goods, a burden that disproportionately affects the working class and those on fixed incomes.
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Moreover, devaluation often serves to artificially inflate the power of a dominant currency, typically that of other countries — most notably the United States. By devaluing our own currency, we inadvertently elevate the strength of foreign currencies, making our economy more susceptible to external shocks and creating a scenario in which we are at the mercy of international market forces. As citizens, we find ourselves not only battling the implications of inflated prices but also facing the reality of a weakened economic position on the global stage.
Economically disadvantaged communities face the brunt of this currency manipulation, as devaluation can result in less investment in local businesses and stifle economic growth. Rather than fostering an environment in which citizens can thrive, this practice creates a cycle of dependency on remittances and foreign goods and services, thereby limiting the opportunities for local entrepreneurs and workers.
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Ultimately, we must question the motivations behind currency devaluation. Is it truly aimed at stabilising the economy, or is it a tactic used by those in power to consolidate economic influence while simultaneously suppressing the purchasing power of the average citizen? It is crucial for our community to engage in a thoughtful discussion about the impact of these policies.
As citizens, we have the right to demand transparency and accountability from our Government. Currency devaluation should be critically evaluated in light of its far-reaching impacts on our daily lives and the long-term health of our economy.
Dudley McLean II
dm15094@gmail.com
