facilitate flexible work arrangements and improve access to training in skills required for enhancing productivity in the economy. further, there is a commitment to implement energy sector initiatives to achieve diversification in the sources of fuel and facilitate energy conservation in order to reduce the cost of energy to the economy and more so to the productive sector. as you would have heard from recent presentations in parliament, these initiatives are well underway. these reforms and commitments are all aimed at improving the competitiveness of jamaica ’ s goods and services. accordingly, the macroeconomic programme aims to reduce the hindrances to economic growth such as the macroeconomic instability caused by high and unsustainable fiscal balances and debt. these factors have limited the government ’ s ability to tackle social issues, including the improvement of education and training and the reduction of crime. for the central bank, our primary role is to maintain price stability and financial system stability. bank of jamaica is committed to maintaining single - digit inflation over the medium term with the long - term objective of reducing inflation to the level of our major trading partners. bank of jamaica is also committed to a flexible exchange rate regime consistent with enhancing the competitiveness of the jamaican economy. the combination of low inflation and exchange rate flexibility is a valuable tool in maintaining the competitiveness of our export sector. in addition, the current historically low interest rates are conducive to stronger investment and growth than we have had in the past. what then does the implementation of this programme mean for businesses, small, medium or large? first, a flexible and competitive exchange rate will enhance the ability of jamaican businesses to compete in both the export markets and the domestic market. a flexible exchange rate is an exchange rate that responds to market forces. a competitive exchange rate is an exchange rate that adjusts so as to at least account for the difference between jamaica ’ s inflation and that of our trading partners. the bank is aware of the concerns about recent movements in the exchange rate. however, let me reassure you that the depreciation thus far has been in keeping with our expectations and the policy objective of ensuring that bis central bankers ’ speeches goods and services produced locally can be sold at competitive prices in the global market. this is absolutely essential for export - led growth. the recent movement in the exchange rate also comes against a background where the bank has been steadily and deliberately rebuilding the net international reserves. bank of jamaica had already halted the decline in reserves which, with reason, was a source of considerable concern in all corners

brian wynter : the international monetary fund ’ s regional economic outlook opening remarks by mr brian wynter, governor of the bank of jamaica, at the launch of the international monetary fund ’ s regional economic outlook, kingston, 20 october 2010. * * * ladies and gentlemen, welcome to the bank of jamaica. we are especially glad to have our colleagues and partners from the international monetary fund – both resident, dr gene leon, and itinerant, mr gilbert terrier ( senior advisor in the western hemisphere department of the imf ) – and our fellow caribbean central banker, dr shelton nichols, deputy governor of the central bank of trinidad and tobago. i know that none of you are strangers to jamaica, personally or professionally, and i hope that you will find this visit pleasant and fulfilling. i am also happy to recognise the jamaican members of the panel who will speak later : the financial secretary, dr wesley hughes, mr keith collister, member of the economic policy committee of the private sector organisation of jamaica and dr damien king, head of the department of economics at the university of the west indies mona campus. many of you in the audience are accustomed to gather in this forum for a discussion of the quarterly developments in the jamaican economy and the role of the bank in the way forward. there will be some of that today but the point of view will be more panoramic and will cover the whole region, including central and south america. sufficient account will be taken of the jamaican situation to enable us to appreciate the context and the parallels across the region. for most of the last two years, policymakers around the world have focused their attention on attenuating the impact of the fallout in the global economy ; repairing the damage to financial infrastructure ; supporting those sectors and persons that were hit hardest ; and stimulating recovery as fast and as far as possible. the review of the outcomes in different countries will no doubt reveal that those with flexible or growing links to the new poles of growth fared much better than those without such links. here in jamaica, we did not experience the collapse of financial firms as many others did owing mainly to the reform and recapitalization of the sector that took place over the previous decade. neither did we undergo the sharp declines in housing and other asset prices that others did. jamaica, however, found itself in a position where it faced the prospect of a slow, uncertain path to economic recovery not only because of its own inertia and uncompetitive