Jamaican vs. US currency

[Rob]

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.

[jojo p]

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 !

[Hussyband]

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.