Re: Jamaican vs. US currency
Quote:
Originally Posted by
Hussyband
Typically, I use a mix while we are there. I get Jamaican for some purchases, but pay large purchases in US dollars.
Over the last week, I've seen threads on various FB pages, trip advisor and a carribean travelers forum I frequent where the topic has come up. One issue that I do not understand, and was hoping someone could either refute or explain is "spending US dollars in Jamaica hurts the economy"... and "spending us dolllars in Jamaica will not enter their system"
Both seem counterintuitive to me, but I'm not an economist. I get that buying rooms from a foreign owned entity may not enter the economy directly, but it seems that salaries, and the like would still make it into the system... but I'm more curious about the impact of using US dollars as opposed to strictly Jamaican.
Thoughts?
Quote:
"spending US dollars in Jamaica hurts the economy"... and "spending us dolllars in Jamaica will not enter their system"
Don't see rooms mentioned in these statements. Spending any currency would enter their system in some manner (reported or underground). Spending US dollars probably does hurt somewhat the "reported" Jamaican Economy as they are often pocketed and not taxed as income.
I don't see the difference between buying rooms from a foreign owned entity or from a Jamaican owned entity entering the economy. Most room purchases are done pre-arrival in Jamaica and are recorded for taxation as soon as funds are received and accrued. These funds (though technically not yet realized as they are pre-arrival) are probably used to pay current liabilities like salaries and such.
Rooms that are purchased upon arrival may or may not be recorded and taxed regardless of currency. That is illegal, of course, but happens. The smaller property probably more frequently than larger places.
Re: Jamaican vs. US currency
The Jamaican vs US currency topic drives me a bit more batty than usual...after I read some of the responses on TA etc.
There is so many inaccuracies on this topic it's ridiculous....my fav being when a Canadian or someone other than an American is told to bring US $ into Jamaica. There is no need for Canadians etc to convert to US then have to convert to Jamaican.
I know Rob is answering your question, Hussyband...I just wanted to grumble. :courage:
Re: Jamaican vs. US currency
Quote:
Originally Posted by
Hussyband
Typically, I use a mix while we are there. I get Jamaican for some purchases, but pay large purchases in US dollars.
Over the last week, I've seen threads on various FB pages, trip advisor and a carribean travelers forum I frequent where the topic has come up. One issue that I do not understand, and was hoping someone could either refute or explain is "spending US dollars in Jamaica hurts the economy"... and "spending us dolllars in Jamaica will not enter their system"
Both seem counterintuitive to me, but I'm not an economist. I get that buying rooms from a foreign owned entity may not enter the economy directly, but it seems that salaries, and the like would still make it into the system... but I'm more curious about the impact of using US dollars as opposed to strictly Jamaican.
Thoughts?
The reason it seems counterintuitive is because it is wrong as well as counterintuitive.
To help any economy, spending money of any kind does the job. You generally get a better deal in Jamaica by paying in J$. By law, all Jamaican businesses must accept the J$.
As a courtesy, many businesses accept the four main tourism currencies, US$, Canadian$, the Pound and the Euro.
Banks offer accounts based on all these currencies because some businesses conduct regular transactions with companies that only use these currencies.
With all this taking place, the idea that spending non-Jamaican currencies hurts the economy is illogical.
The majority of the time, foreign currency is exchanged at the nearest cambio. The average Jamaican has little use for non-Jamaican currency.
But if a Jamaican travels, having access to foreign currency can come in handy.
We have a US$ account to pay some of our bills, but the banks are limiting the monthly deposit amounts and adding fees and taxes on these deposits over the limits.
So with the current rules, spending US$ can actually create more fees for the banks and more taxes for the government.
Re: Jamaican vs. US currency
If you go to Cuba, you have to use CUC and that's that, there is no choice.. If I go to a place that indeed gives me a choice, them I decide what I want to do. Not going to listen to a bunch of folks on facebook tell me how to vacation.
I use US dollars, always have . always will. Besides bigger bills for a couple larger purchases, I bring a bunch of one and five dollar bills...This will take care of almost all the purchases I make, from taking route taxis everywhere, to buying cocktails on the beach, or at my bar, food, tipping, everything........and I do not have to hear '' I have no change '''. I also do not have to change over money, and change back if I have leftover, ( of course I never have any leftover ! :)
Re: Jamaican vs. US currency
And, that's all fine, Jojo. You may pay more using US$ rather than Jamaican$, if you venture out of the tourist zones (pricing will be in Jamaican of course)...but many of the Americanized hotels in Negril give a better rate for food and room by using US$ instead of Jamaican. It probably balances out for you.
Re: Jamaican vs. US currency
Jojo - and isn't that a pain about converting US to CUC in Cuba with the automatic 10% penalty?!
Just a little side-note about Cuba -- some Cubans like US 100 dollar bills. I was told by my Casa owner that when Cubans travel to other countries to buy goods, the US dollar is desired for that. Of course, the Cuban government would not like it if they knew.
Re: Jamaican vs. US currency
Quote:
Originally Posted by
Hussyband
Typically, I use a mix while we are there. I get Jamaican for some purchases, but pay large purchases in US dollars.
Over the last week, I've seen threads on various FB pages, trip advisor and a carribean travelers forum I frequent where the topic has come up. One issue that I do not understand, and was hoping someone could either refute or explain is "spending US dollars in Jamaica hurts the economy"... and "spending us dolllars in Jamaica will not enter their system"
Both seem counterintuitive to me, but I'm not an economist. I get that buying rooms from a foreign owned entity may not enter the economy directly, but it seems that salaries, and the like would still make it into the system... but I'm more curious about the impact of using US dollars as opposed to strictly Jamaican.
Thoughts?
Well outside of how it effects the local economy, after much thought, I've found that it's most cost effective to just spend US currency because of the 'double whammy' of losing out on the exchange rate when you buy the Jamaican $$$'s and then losing again when you trade back the extra Jamaican $$$'s when you leave. The key is bringing half, if not most of your money in small change ($1's & $5's). Small change is key because when dealing with a small bar/food bill or 'beach vendor' you always take a beating if they owe change (it's very rare they give you US $$$ back in change). Plus, on the occasion you have larger US bills and they give you Jamaican change back, at least the locals are getting the difference and not some 'godless bank'! LOL... Anyways... just my 2 cents...
https://tickers.TickerFactory.com/ez...553b/event.png
Re: Jamaican vs. US currency
Quote:
Originally Posted by
Rob
The reason it seems counterintuitive is because it is wrong as well as counterintuitive.
To help any economy, spending money of any kind does the job. You generally get a better deal in Jamaica by paying in J$. By law, all Jamaican businesses must accept the J$.
As a courtesy, many businesses accept the four main tourism currencies, US$, Canadian$, the Pound and the Euro.
Banks offer accounts based on all these currencies because some businesses conduct regular transactions with companies that only use these currencies.
With all this taking place, the idea that spending non-Jamaican currencies hurts the economy is illogical.
The majority of the time, foreign currency is exchanged at the nearest cambio. The average Jamaican has little use for non-Jamaican currency.
But if a Jamaican travels, having access to foreign currency can come in handy.
We have a US$ account to pay some of our bills, but the banks are limiting the monthly deposit amounts and adding fees and taxes on these deposits over the limits.
So with the current rules, spending US$ can actually create more fees for the banks and more taxes for the government.
Thank you.
I was hoping a local would chime in, to have a local business owner chime in makes it better.
I've gotten myself embroiled on an all day discussion (argument) on another page, and im just too tired to argue about it any longer. Sometimes, what people think (pick a topic) and what is reality just don't seem to mesh.
I appreciate the input.
Re: Jamaican vs. US currency
ukran1ans : since I am Canadian I use Jamaican dollars when I am there but I have a question for you. If you return to Jamaica yearly (or more), why bother changing back on your way out. I always carry Jamaican home so that when I return I don't have to head to a cambio or bank for a while.
Re: Jamaican vs. US currency
For those of us that have to try to stretch our vacation dollars ... I find that you have to have both JA and US dollars . I normally use JA's , but some places that price in US , don't give a favorable conversion to JA .
Re: Jamaican vs. US currency
Quote:
Originally Posted by
ukran1ans
Well outside of how it effects the local economy, after much thought, I've found that it's most cost effective to just spend US currency because of the 'double whammy' of losing out on the exchange rate when you buy the Jamaican $$$'s and then losing again when you trade back the extra Jamaican $$$'s when you leave. The key is bringing half, if not most of your money in small change ($1's & $5's). Small change is key because when dealing with a small bar/food bill or 'beach vendor' you always take a beating if they owe change (it's very rare they give you US $$$ back in change). Plus, on the occasion you have larger US bills and they give you Jamaican change back, at least the locals are getting the difference and not some 'godless bank'! LOL... Anyways... just my 2 cents...
https://tickers.TickerFactory.com/ez...553b/event.png
Absolutely no doubt about this.
I have just had enough the last few days of people with zero financial experience stating it "harms" the economy.
You know, there are a lot of people who are chock full of crap on some message boards. They'll say anything and pass it off as fact. I've been twenty times now, and wouldn't dare to consider myself an expert on anything... except possibly the best position to nap in a hammock.
Re: Jamaican vs. US currency
When I'm home in Jamaica I only use Jamaican currency. I think in Jamaican dollars.
Why would I do otherwise?
Cap
Re: Jamaican vs. US currency
I think of it also as a respect thing.
When in Mexico I use their currency, when in Jamaica likewise.
I think it benefits me and them not having to convert.
I had been told in Mexico it is not always easy or beneficial for vendors, cab drivers etc to convert at the banks.
Not sure if that is in fact true but like I said i think its respectful....when in Rome ....
And...never convert when leaving, you know your going back!!
Re: Jamaican vs. US currency
Quote:
Originally Posted by
captaind
When I'm home in Jamaica I only use Jamaican currency. I think in Jamaican dollars.
Why would I do otherwise?
Cap
Thanks, but that's not the question.
Question is, does it harm the economy to use foreign currency. Not really looking for a debate or input on what folks do or do not do/use while there, just an answer to the question.
Just wanted the answer out of utter frustration listening to folks go on about how it kills the economy.
Re: Jamaican vs. US currency
Quote:
Originally Posted by
SLP
ukran1ans : since I am Canadian I use Jamaican dollars when I am there but I have a question for you. If you return to Jamaica yearly (or more), why bother changing back on your way out. I always carry Jamaican home so that when I return I don't have to head to a cambio or bank for a while.
That's actually a good point (I guess I was only doing that exchange back the first few times I was here, not knowing I'd fall in luv with the island.. lol). I've been doing the 'US $$$'s only' for a while now so exchanging back hasn't been an issue. The only Jamaican I use now is just the change I get back from the locals when I only have big bills.
Hussyband, here's a good read from economic pros if you're still curious...
https://www.slideshare.net/EmanAbbas...urism-13613739
https://tickers.TickerFactory.com/ez...553b/event.png
Re: Jamaican vs. US currency
Quote:
Originally Posted by
ukran1ans
That's actually a good point (I guess I was only doing that exchange back the first few times I was here, not knowing I'd fall in luv with the island.. lol). I've been doing the 'US $$$'s only' for a while now so exchanging back hasn't been an issue. The only Jamaican I use now is just the change I get back from the locals when I only have big bills.
Hussyband, here's a good read from economic pros if you're still curious...
https://www.slideshare.net/EmanAbbas...urism-13613739
https://tickers.TickerFactory.com/ez...553b/event.png
That link has EXACTLY what I was looking for.
Thank you.
With what Rob discussed and this link, I don't feel bad about using American dollars now.
