Exchange rate.

[sunray]

The plunging value of the Jamaican dollar has been correctly tied by some to the lack of a new agreement on IMF loan/debt restructuring. As the Ja $ drops in value to the US $, it quickly translates to inflationary pricing. For example, think of the route taxi driver, getting paid in Ja $, and fueling his taxi with gasoline derived from foreign oil priced in US $. The driver's costs go up because his gasoline bill will have shot up, and he will then seek increased fares. It is not correct to think that we, as tourists, will benefit from a weaker Ja$.
I think the Captain might be able to confirm that when the exchange rate was 88 cents Ja to 1$ US costs in Jamaica were lower in real terms.

God help all our Jamaican friends.